If you are 62 years of age or older and own a property that is used as your primary residence, you could qualify for these benefits of a Reverse Mortgage:
- Minimal income restriction: A reverse mortgage is based primarily on your age and the value of your property, not your income. You will, however, need to demonstrate the ability to pay for ongoing property taxes and insurance.
- Free you from existing loans: Your existing loans can be paid off from the proceeds of the reverse mortgage.
- No more monthly payments: There are no monthly payments to make as long as you live in the property.
- A line of credit with growth: You may also choose to have a line of credit that grows in value every month.
- Use the proceeds for any purpose: The loan proceeds can be used to pay off credit card bills, medical insurance, or anything you can think of.
- No prepayment penalty: You may terminate the loan at any time by paying off the loan balance without any penalty
- Limit on the amount you owe: You will never owe the lender more than the appraised value of your property since the program is insured by the U.S. Government’s Federal Housing Agency (FHA).
- Closing costs may be financed: Almost all of the closing costs can be financed in the loan, which means no out-of-pocket expense for you.
- Social Security and Medicare are unaffected: The loan will not affect exiting Social Security and Medicare benefits. However, services such as Supplemental Security Income (SSI), Medicaid, etc. may be affected.
The Reverse Mortgage Program also allows a home buyer to use a Reverse Mortgage to purchase a home. This can be a great tool for senior home buyers that may not qualify for a traditional mortgage!
If you feel you might benefit from a Reverse Mortgage either to purchase or to refinance and enjoy a better quality of life, contact us to see how we can help.