Reverse Mortgage loan
What is a reverse mortgage loan?
A reverse mortgage loan is commonly known as a home equity conversion mortgage (HECM). It works by enabling the borrower to access equity in their property and use it to supplement retirement income.
What are the qualifications for a reverse mortgage loan?
All prospective borrowers who are interested in a reverse mortgage loan must meet with a HUD approved counselor and undergo a financial assessment to determine if a reverse mortgage loan is the right solution. There are certain qualifications for a reverse mortgage loan that need to be met in order to be eligible.
Qualifications for a reverse mortgage loan:
- You are 62 years of age or older
- You own your home and use it as your primary residence
- The house is single family, multi-family (up to 4 units) or an approved condominium or manufactured home
- You own your own home free and clear or have a small amount left to pay on the existing mortgage
- Your home is in good condition prior to taking out the loan
Requirements for a reverse mortgage loan:
During the term of your reverse mortgage loan, you will still be required to pay:
- Property taxes
- Homeowner’s insurance
- Basic home maintenance
- Homeowner’s Association (HOA) fees, if applicable
Benefits of a reverse mortgage loan
If you qualify and are able to meet the requirements, there are several reasons why homeowners choose a reverse mortgage loan:
- Eliminate monthly mortgage payments
- Access the equity you have built in your home
- Supplement retirement income
- Loan amount is based on your age, home value, and current interest rate and can be dispersed in a lump sum or line of credit
- Loan does not have to be repaid as long as you are living in the home and meeting loan terms
Let’s connect so we can help you learn how a reverse mortgage loan works and you can decide if it’s the right choice for your situation.
*These are brokered loan products.
All loans subject to underwriter approval; terms and conditions may apply. Subject to change without notice. Always consult an accountant or tax advisor for full eligibility requirements on tax deduction.