Reverse mortgage (Purchase or Refinancing) is a unique type of mortgage specially made for Seniors. You or somebody you know probably qualify for a Reverse Mortgage.

R       Reverse Mortgage (Refinancing), Facts and Benefits:

• Approved by HUD.
• Guaranteed by FHA. known by "HECM" or Home Equity Conversion Mortgage.
• No credit, No income and No use restrictions.
• Does not affect Social Security or Medicare.
• Proceeds are not taxable since is not considered and income, in fact, a loan.
• No monthly payments as long as you live on the property (Principal Home Only).
• No out of pocket expenses, it can be added to the loan.
• Estate passes to the heirs of the borrower(s).
• Can not be foreclose for non-payment as long last borrower(s) still living at home.
  

       Approval is base primarily base on appraisal of the property and the youngest age of one of the borrower(s).

       Must be 62 years or older with no upper age restriction.

MISCONCEPTIONS:

 House goes to Lender or Government after death...     NOT.    

Home must be in and remain in the borrowers(s) name. Like any other loan a lien is place on the property.

This assures that the lender be repaid the principal, interest and closing cost like any other type of mortgage. 

Reverse mortgage is a "non-recourse", meaning, borrowers(s) can not pass the debt to heirs.

High cost loan...    NOT.       

Reverse  Mortgage average around 1%  more than the regular FHA.

        The Reverse Mortgage could be lower in cost than the Conventional Mortgage. Reverse Mortgage

        interest rate is based on 1 year United State Treasury Note instead of Prime Rate. This gives FHA

        Reverse Mortgage a lower interest rate that most Adjustable Conventional Mortgage.

Taxable income...   WRONG.

Proceeds are not taxable because is not considered and income, but in fact, a loan and since United states

sets Social Security, Medicare, and FHA Reverse Mortgage rules; they have all been made compatible

with each other.

There is not a repayment made as long one surviving borrower remain in the home. There is no credit

or income requirements. A bankruptcy does not disqualify a borrower(s) as long it has been discharge.

The home may be in a revocable trust as long as the  borrower(s) are the only trustees. So there,

Reverse Mortgage can be a benefit for your family, and a safe tool for all Seniors.

SEE THIS REFERENCES:

AARP, "Home made Money";

FANNIEMAE, "Money from HomeE"

NCOA, NATIONAL COUNCIL ON AGING "USE YOUR HOME TO STAY AT HOME"

"A GUIDE FOR HOMEOWNER WHO NEED HELP NOW";

AMERICAN BAR ASSOCIATION,  "REVERSE MORTGAGE-A Lawyer GUIDE TO HOUSING AND INCOME ALTERNATIVES".

LOAN REPAYMENT

A reverse mortgage will not become due, nor will it require repayments, as long as you remain in the home and the loan is in good standing. This includes continuing to pay property taxes and homeowner's insurance, and providing basic upkeep of the property.

TOTAL LOAN COSTS

Your reverse mortgage's  advisor discloses all facts and figures to ensure you are fully aware of the total loan costs over the projected life of the loan.

STANDARD & CAPPED INTEREST RATES

Interest rates are adjusted either monthly or annually (you choose). Reverse Mortgage Fixed HECM product enables you to lock-in to one low rate for the life of the loan.

LIMITATION ON FEES

Origination fees are limited by HUD regulations and may be financed as part of the reverse mortgage. This means you will have few upfront, out-of-pocket expenses.

ASSET PROTECTION

A reverse mortgage is a non-recourse loan, which means you can never owe more than the loan balance or appraised value of the property, whichever is less. In the event of a property depreciating in value, the difference is not incurred by the borrower; it is covered by government insurance. Any remaining equity after repayment of the loan belongs to you or your estate.

NO PREPAYMENT PENALTY

Although the loan is not due until you permanently vacate the home, it can be paid off at any time with no additional costs or penalties.