Reverse Mortgages

What Is a Reverse Mortgage?

A reverse mortgage is a loan that lets older homeowners tap into their net worth by converting part of their home’s equity into cash.

Here are the basics you need to know about reverse mortgages:

• Available for homeowners 62 years or older
• Cash proceeds are tax-free
• You can use the cash for any purpose you’d like
• You can use the cash to pay off your existing mortgage or other debts
• You can use the cash to purchase a new property with the “reverse for purchase” program
• Requires minimal income or credit qualifications
• You must own the property outright or have a large amount of equity in it
• The home must be your primary residence
• You must have no delinquent federal debt

Reverse Mortgage: A Quick Overview

FHA, who insures the reverse mortgage for the benefit of the borrower, calls reverse mortgages a “Home Equity Conversion Mortgage” or HECM.

The reverse mortgage was conceived to help retirees improve their quality of life by utilizing the accumulated equity in their homes. The tax-free proceeds may be used to cover living expenses, pay for long-term health care, pay off an existing mortgage or even take a trip around the world! In fact, there are no restrictions on how to use the proceeds of an HECM… the money is yours to do whatever you want!

An HECM loan is called a “reverse mortgage” because, unlike traditional mortgages, instead of making payments to a lender, the borrower makes no payments and the lender makes payments to the borrower.

The HECM also has many varied options the borrower can take advantage of. Contact us to learn which advantages might apply to you.

Are You Ready to Apply?

Apply online now through our WBM Application^TM or contact us to speak with one of our reverse mortgage specialists. We’re here to help!