A reverse mortgage is a type of mortgage that is designed to help senior homeowners age 62 and above turn part of their home equity into cash. Seniors eligible for a reverse mortgage can receive the proceeds of the mortgage in a number of ways including monthly payments, a lump sum or through a line of credit. One of the biggest advantages of a reverse mortgage for a senior homeowner is that unlike a traditional mortgage where you make payments every month, with a reverse mortgage no monthly payments are made. Freeing up the money that was formerly used for your mortgage payment can help lead to a less stressful and more enjoyable life.
Most reverse mortgages are a type of loan called a Home Equity Conversion Mortgage (HECM). These mortgages are backed by the US government. Reverse mortgages can be a great way for older homeowners with limited income, such as retirees, to alleviate financial stress and live more comfortably in their home. With a reverse mortgage, you still retain 100% ownership of your home and the loan will not have to be repaid until the home is sold, vacated or the owner passes away.
If you are a senior homeowner, let Quality Direct Funding show you how to turn your home equity into supplemental income that can last a lifetime.
Qualification is based on these important factors:
The borrower must own the home.
You must be 62 years or over. (A non-borrowing spouse may be under age 62.)
The home must be your primary residence.
There are some other factors you should understand:
The property must be FHA approved.
Qualification is based on the age of the youngest borrower.
Principal residence means that you live there for six months and one day per year.
You must continue to pay property taxes and home owners insurance and maintain the home.
The reverse mortgage must be used to pay off your traditional mortgage, if any. Additional proceeds may be used as you choose.
The loan proceeds are usually not taxable by the government (check with your financial adviser).
The property value, your age and interest rates affects the amount you are able to borrow.
To learn more about Reverse Mortgages, please contact Quality Direct Funding.