Frequently Asked Questions (FAQ’s) About Reverse Mortgagees

Reverse mortgages are a safe and secure financial tool but sometimes, a few misconceptions come up about this product. Let’s go over some common questions and concerns, so you understand the facts.

 

Q: Does the bank own my home?

A: No does not own your home. You remain the owner of your home and can live in the home for as long as you wish. When the home is sold, the loan is repaid (including accrued interest and any fees) and any remaining equity goes to you or your heirs.
*Borrower must continue to pay property taxes, homeowner’s insurance, HOA/Condo fees(if any), and maintain the home. Home must also remain your primary residence. Failure to do so will result in foreclosure

 

Q: How much can I borrow?

A: 3 factors are considered to calculate how much equity you can access:

1. Age of the youngest borrower

2. Home value

3. Current interest rates.

Although we use the home value you initially provide us to calculate the preliminary loan amount, an independent appraiser must visit your home to ascertain the current value of your home. We then re-calculate the loan amount according to this official home value. All this will be organized by your reverse mortgage professional. They can also answer any questions or concerns you may have.

 

Q: What if you have a mortgage already?

A: That’s absolutely fine. If you qualify, a reverse mortgage will first pay off your existing mortgage and then give you the remaining proceeds. In fact, many of our borrowers use a reverse mortgage for that purpose – to eliminate monthly payments on their traditional mortgage.

*Borrower must continue to pay property taxes, homeowner’s insurance, HOA/Condo fees(if any), and maintain the home. Home must also remain your primary residence. Failure to do so will result in foreclosure

 

Q: Will my children lose their inheritance?

A: The loan will need to be repaid once the last remaining borrower passes away or moves out of the home.* Normally, the home is sold, the loan (including interest and any fees) is repaid, and any remaining equity goes to you or your heirs. Your heirs will be given an initial 3 month period after your passing to communicate with the lender and try and reach a decision to sell or keep the home. The lender can then give them extensions of up to 12 months total if they choose to sell the home to allow them to complete the transaction.

*Borrower must continue to pay property taxes, homeowner’s insurance, HOA/Condo fees(if any), and maintain the home. Home must also remain your primary residence. Failure to do so will result in foreclosure

 

Q: Does a Reverse Mortgage require that I make monthly payments?

A: NO. There are never any monthly mortgage payment required.

*Borrower must continue to pay property taxes, homeowner’s insurance, HOA/Condo fees(if any), and maintain the home. Home must also remain your primary residence. Failure to do so will result in foreclosure
 

Q: Who qualifies for a reverse mortgage?

A: The best and fastest way to find out if you qualify is to fill out the form on the right and receive our free, no-obligation information packet. This information guide will help you with everything you need to know about reverse mortgages and information to help you in your decision.

• There are almost NO credit requirements, NO income requirements, and

NO health requirements. To be eligible for a reverse mortgage,

HUD’s Federal Housing Administration (FHA) requires that:

• The borrower is the homeowner;

• The borrower is 62 years of age or older;

• The borrower owns the home outright, or has a

mortgage balance that can be paid off with the proceeds;

• The borrower must live in the home as their primary residence…

• You are further required to receive consumer information from a

HUD-approved counseling agency before obtaining the loan.

If you’d like to speak with a Reverse Mortgage Professional to find out exactly how much you qualify for, please call toll free (877) 784-7375 or (407) 617-2654. You’ve worked hard for your home, now let your home, and us, work for you.

 

Q: Can I lose my home?

A: So long as you continue to pay your property taxes, homeowner’s insurance, HOA/Condo fees(if any), and maintain the home, you will not lose your home. The home must also remain your primary residence. Failure to do so will result in foreclosure