*Always consult with your tax advisor, financial planning professional, or real estate professional.  Payment of property taxes, homeowner's insurance, HOA dues (if applicable) and general maintenance of the property is required.  Failure to abide by the terms and conditions of the loan could result in the loan being called due and payable, which could ultimately lead to foreclosure. Americans are living longer and without a good plan, you could outlive your money (tenure payments are guaranteed).  These materials are not from HUD or FHA and were not approved by HUD or a government agency.  Reverse Mortgages are neither endorsed nor approved by the federal government. The Federal Housing Administration (FHA) provides certain insurance benefits for lenders and borrowers in connection with the lender’s reverse mortgage or HECM loans; the FHA does not make or originate loans. A reverse mortgage is a home loan, not a government benefit.

© 2019 by David Edel, Reverse Mortgage Specialist   NMLS #634160

Can I buy a home with a reverse mortgage?

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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?

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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?
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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?
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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?

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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.

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Is a counseling session by an independent
HUD-certified counselor required?

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Yes. A list of approved counselors will be provided.

Who will help me through the whole process?
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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.

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What if I have an existing mortgage?

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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.

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Will I have to make monthly payments?

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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.

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How much can I get from my reverse mortgage?

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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?

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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?

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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?

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Yes. You will always retain the title until your home is sold.