Can I buy a home with a reverse mortgage?
Yes. If you are able to provide approximately 50% of the purchase price as a down payment,
the reverse mortgage will pay the other 50%. You take full ownership and are not required
to make a mortgage payment.
Am I responsible for paying my property taxes?
Yes. With a reverse mortgage, you are still the homeowner and are responsible for paying your property taxes each year. However, you can use the funds from your reverse mortgage to pay for these taxes.
Are there homeowner's insurance requirements?
Yes. It is your responsibility to maintain an acceptable amount of property insurance,
including flood and hazard insurance where necessary.
How will I access my funds?
You can choose to receive your funds in a lump sum, in regular monthly installments
or by drawing from a line of credit at your discretion — or any combination of these options.
Is my type of home eligible?
The property must be your primary residence. Single-family, 2–4 unit multi-family, modular,
manufactured, planned unit developments (PUD) and FHA approved condominiums are all eligible.
Will I have to sell my home when the loan becomes due,
or will my heirs have the option of keeping the house?
When the loan is due, your heirs will have to repay the amount owed. You or your heirs always
have the option of paying off the reverse mortgage balance and keeping the house (this also can
be done by refinancing with a standard mortgage) or by selling the house to pay off the balance.
In any case, neither you nor your heirs will be required to pay more than the appraised market
value of the home at the time of repayment.
Is a counseling session by an independent
HUD-certified counselor required?
Yes. A list of approved counselors will be provided.
Who will help me through the whole process?
I work with four of the top six national reverse mortgage lenders and it would be my privilege
to work with you. Please feel free to contact me so that I may answer your questions and
provide you with personalized information. I look forward to speaking with you.
What if I have an existing mortgage?
You may be eligible for a reverse mortgage even if you still have an existing balance on your mortgage. However, the existing mortgage balance must be paid off at closing. You can choose to pay off the balance with funds from the the reverse mortgage or another source.
Will I have to make monthly payments?
No. You are not required to make any payment until the loan is due. However, you have the option to make payments any time you choose. There are no penalties for making payments before the loan is due.
How much can I get from my reverse mortgage?
Between 40% – 60% of the FHA appraised value. The earlier your date of birth, the more you get.
How can I use the funds that I receive from my reverse mortgage?
You can use the funds for anything you choose, such as home improvements, medical expenses
(including in-home care), unexpected expenses, travel or help pay a grandchild’s college tuition.
When will the loan become due?
Circumstances that will cause the loan to become due include but are not limited to: 1) the last surviving borrower(s) permanently moves out of the home or passes away; 2) the last surviving borrower(s) fails to live in the home for 12 consecutive months for medical reasons; 3) the borrower(s) fails to pay property taxes or insurance; or 4) the property deteriorates beyond what is considered reasonable.
Will I still own my home?
Yes. You will always retain the title until your home is sold.