Reverse Mortgages

A reverse mortgage is a unique type of loan designed for homeowners aged 62 or older that allows them to convert part of the equity in their home into cash. Unlike a traditional mortgage, where you make monthly payments to the lender, a reverse mortgage provides you with funds that do not have to be repaid until you sell the home, move out permanently, or pass away. This financial tool can be an excellent way for seniors to supplement their income, cover medical expenses, or make home improvements while staying in their homes.

• No Monthly Mortgage Payments
  • With a reverse mortgage, you do not need to make monthly mortgage payments. Instead, the loan is repaid when the home is sold or otherwise vacated.
• Flexible Payout Options
  • Choose how to receive your funds: as a lump sum, monthly payments, a line of credit, or a combination of these options, depending on what best suits your financial needs.
• Stay in Your Home
  • Remain in your home while accessing its equity, providing financial stability without the need to sell or move.
• Non-Recourse Loan
  • Reverse mortgages are non-recourse loans, meaning you will never owe more than the value of your home, regardless of the loan balance.
• Tax-Free Proceeds
  • The funds you receive from a reverse mortgage are generally tax-free, allowing you to use the money without increasing your taxable income. Consult a tax advisor for specific advice.
• Use Funds for Various Needs
  • Use the proceeds from a reverse mortgage for a variety of purposes, such as supplementing retirement income, covering healthcare costs, making home improvements, or even paying off existing debts.

To qualify for a reverse mortgage, borrowers must meet the following criteria:

• Age Requirement: All borrowers must be at least 62 years old.
• Primary Residence: The home must be the borrower’s primary residence.
• Home Equity: You must have significant equity in your home, typically at least 50%.
• Property Type: Eligible properties include single-family homes, multi-family homes (up to 4 units), FHA-approved condominiums, and certain manufactured homes.
• Financial Assessment: Borrowers must demonstrate the ability to maintain the property and cover ongoing expenses such as property taxes, homeowner's insurance, and maintenance.

Reverse mortgages offer a valuable opportunity for seniors to unlock the equity in their homes and achieve greater financial security without having to sell or move. With no monthly mortgage payments, flexible payout options, and the ability to remain in your home, a reverse mortgage can provide the funds needed for various financial needs and improve your quality of life in retirement. If you are 62 or older and considering a reverse mortgage, explore this option to see how it can benefit you.

For more information or to start your reverse mortgage application, contact us today. We are here to guide you through every step of the process!