Reverse Mortgage
HECM Reverse Mortgage Information for Senior Homeowners who are at least 62 of age.
Just The Facts:
Previously, there were only two ways to get cash from your home.
You could sell and move elsewhere, borrow against your home and make monthly payments.
A reverse mortgage provides another way of getting cash from your home without leaving your home or making monthly mortgage payments.
A reverse mortgage is simply a loan against your property that does not require payment until you sell, move, or pass away. You can receive the money in one lump sum, regular monthly payments to you, or in the amounts you want whenever you wish. The loan is repaid when you die, sell, or move out of your home permanently.
Qualifications:
Homeowners who are at least 62 years of age who are on title and occupy the home as their primary residence. Any existing loans must be paid off with the reverse mortgage.
Mandatory counseling session with an HUD approved housing counselor.
Eligible Properties
Single-family one-unit dwellings. Also most reverse mortgages allow 2-4 units owner-occupied properties, along with most condominiums, planned unit developments, manufactured homes with an FHA approved foundation.
Repaying The Loan
Reverse mortgages generally don’t require repayment for as long as you occupy your home. The loan is repaid in full, including interest and other charges, when the last living borrower dies, sells the home, or permanently moves out of the home.
Because you are not making payments, the amount you owe grows over time. Because the amount borrowed increases over time, the amount of equity left when you sell or pay off the loan will generally decrease. But you can never owe more than your home’s value when the loan is to be re-paid. This is because the HECM reverse mortgage is a non-recourse loan.
It’s Your Money
The proceeds from a reverse mortgage are not taxable because the money from a reverse mortgage is considered as loan advances, not taxable income. You can receive the money in a lump sum, line of credit, monthly income or a combination.
Reverse mortgage borrowers continue to own their homes. You simply have a mortgage without the obligation of making monthly payments. You are responsible for property taxes, homeowners insurance and maintaining good condition of the property.
Is A Reverse Mortgage Right For Me?
Often it’s best to sit down in the comfort of your own home with trusted family members and a certified reverse mortgage advisor. A reverse mortgage is not necessarily right for everyone. A Capital M Lending advisor will ask you several pertinent questions to help guide you to consider all your options. The advisor will explain in detail how a reverse mortgage works and specifically address your personal situation. You will know the cost of a reverse mortgage and how much money is available to you.
Use our Reverse Mortgage Calculator for a simple example of the amount you may be eligible for.
Here’s what your neighbors say; who have already met with a reverse mortgage advisor from Capital M Lending:
Several Testimonials pasted
