You must be at least 62 and own your own home or condominium in order to qualify for a reverse mortgage. There are no income or credit requirements to qualify. You may be eligible for a reverse mortgage even if you still owe money on your first mortgage.
Currently,
there is only one loan products available, the FHA, HECM (Home Equity Conversion Mortgage Another benefit of this loan is that it is "non recourse" which means that no matter how high the loan balance grows, the borrower or their heirs never owe more than the home’s market value. The heirs can keep the home once the reverse mortgage is repaid.
The proceeds from a reverse mortgage can be used for anything: daily living expenses; home repairs and home improvements; medical bills and prescription drugs; pay-off existing debts; education; travel; long-term health care; retirement and estate tax planning; and other needs you may have. Proceeds from a reverse mortgage are available as a lump sum, fixed monthly payments, a line of credit, or a combination of these options.
The amount of benefit that you will qualify for will depend on your age at the time you apply for the loan, the type of reverse mortgage you choose, the value of your home, current interest rates, and for some products, where you live. As a general rule, the older you are and the greater your equity, the larger the benefit will be.
The costs associated with getting a reverse mortgage are similar to those with a conventional mortgage, such as the origination fee, appraisal and inspection fees, title policy, mortgage insurance and other normal closing costs. With a reverse mortgage, all of these costs can be financed as part of the mortgage. Several newer reverse mortgage offer lower overall fees but may charge higher interest rates. Your Golden Equity Advisor will be able to help you sort through the pros and cons of each.
To protect the seniors, independent counseling is required before applying for these special loans.
For additional information or to discuss your personal situation, please contact us
