Do I still own my home?
Yes. You remain the owner and keep your name on the title. You’re still responsible for property taxes, insurance, and maintenance.
What exactly is a reverse mortgage?
A reverse mortgage allows homeowners 62 and older to convert part of their home equity into tax-free cash — without giving up ownership or making monthly mortgage payments.
What is a HECM reverse mortgage loan?
A HECM reverse mortgage is a unique loan that allows homeowner(s) 62 years of age and older to draw on the equity in their home, which is paid to the homeowner(s) in a variety of payout options. One aspect of this loan is that it does not require repayment until the homeowner(s) no longer reside [...]
Is my home eligible for a reverse mortgage?
Homes eligible for a reverse mortgage include single-family homes, detached homes, townhouses, and two-to-four unit properties that are owner-occupied. Condominiums must be FHA-approved. Some manufactured homes are eligible but must meet FHA guidelines. Contact your loan officer for more details on manufactured home eligibility.
How much money can I expect to get?
The amount of money that a lender will loan depends upon how old you are at the time of closing, how much your house is worth, the total amount of liens, and interest rates. The payoff of your existing mortgage and mandatory obligations along with the payment option chosen will affect the amount of money [...]
How do I receive my payments?
Reverse mortgage payments can be received in one of five ways: • Tenure: equal monthly payments • Term: equal monthly payments for a fixed period of months as decided by the borrower • Line of Credit: payments made in installments or at various times and in amounts dictated by the borrower(s) • Modified Tenure: monthly [...]
What happens if I outlive the loan? Will I have to repay the lender?
No. As long as one of the borrowers on the loan note lives in the home, continues to pay the taxes and insurance and maintains the home in good condition, you will not need to repay the loan. Once the last surviving borrower passes away or the obligations of the loan are not met, the [...]
Must my house be paid off for me to qualify for a reverse mortgage?
No. You do not need to pay off your home to qualify. However, the loan proceeds you receive from a reverse mortgage must be used to pay off the existing mortgage or liens (if there is a mortgage balance owing) You will continue to hold title to your home subject to the mortgage lien securing [...]
