The reverse mortgage program has helped thousands of seniors in all different financial brackets. It works for everyone from the senior who is struggling to make their monthly mortgage payment to the senior who is looking to have extra money on hand for daily expenses. The first thing you need to do is determine if the program is right for you. When you call One Reverse Mortgage your licensed expert will go over your financial goals to help you determine if the program makes sense for you. Here are some other things you should know about a reverse mortgage.
Qualifications – To qualify for a reverse mortgage you must be at least 62 years old, you must own and occupy the property as your primary residence and the property must have sufficient equity. If you are married you and your spouse must be 62 (or older) in order to qualify for the program with One Reverse Mortgage. This is in the best interest of the borrowers.
Benefits – There are many benefits to the reverse mortgage program. A reverse mortgage eliminate your monthly mortgage* (if you have one), you remain the owner of your home**, the money you receive is tax-free***, improve your life today but also into the future and the reverse mortgage can improve your quality of life. For many who choose a reverse mortgage it gives them the ability to do more in your retirement.
Government insured program – The reverse mortgage program has been a federally insured reverse mortgage loan program since 1989. The government does not actually offer the reverse mortgage loan but regulates the products and requirements. The Department of Housing and Urban Development (HUD) is actually the area of the government that oversees the lenders that offer the reverse mortgage loan.
Non-recourse loan – A reverse mortgage is a non-recourse loan which means that if you owe more than the home is worth when the loan comes due, the Federal Housing Administration (FHA) managed mortgage insurance fund will cover the difference.
You still own your home – One of the most common misconceptions with the reverse mortgage program is that the bank is now the owner of your home. That is simply not true. Title on a reverse mortgage is no different than any other mortgage you’ve ever had – only the homeowners are on the title.
You can still leave your home to your heirs – If you plan on leaving your home to heirs, you can still do so even if you have a reverse mortgage. If your heirs choose to keep the property, they will have to refinance the entire amount of the existing mortgage balance regardless of the home’s appraised value. If your heirs choose to sell the property and the proceeds exceed the value of the home, they can keep the difference. For cases where the proceeds are insufficient to pay off the loan, then the lender absorbs the difference.
Responsibilities with the loan – Your responsibilities with the reverse mortgage are simple. The home must remain as your primary residence, you must maintain your home, and remain current on your taxes and property insurance. These responsibilities are no different than with a traditional mortgage.
The reverse mortgage program is a financial option for today’s senior that not many know exists or how it works. It can be a great financial tool to help you not only today but into the future. If you are interested in finding out more information give us a call. A licensed expert will review your financial goals with you and help you determine if the program is right for you. One Reverse Mortgage licensed experts are trained and experienced working with seniors Americans and will give you the attention and time you deserve.
*Homeowner is still responsible for taxes, insurance, and property maintenance.
**You remain responsible for counseling costs, taxes, insurance and maintenance expenses.
***Please consult with your financial advisor.