Eliminate Monthly Mortgage
Get rid of your burden and free up cash to cover other important expenses.*
Access Cash
Your proceeds are tax-free** and can be used any way you like: paying health care costs, financing home remodeling, etc.
Stay in Your Home
With your reverse mortgage loan, you can finally afford to stay in the home you love.*
Who Is a Reverse Mortgage Good For?
Reverse mortgage loans have helped millions of Americans nationwide access their home equity to help enjoy their retirement. The Reverse Mortgage can be used anyway you like, many of which are helping children and grandchildren achieve their financial goals.
The Pragmatic Planner
Convert your home’s equity into monthly payments to supplement your monthly income and maintain your standard of living in retirement.
The Maximizer
Did you purchase your home when prices were lower or has your home value appreciated over the years? Get a lump sum directly deposited from a reverse mortgage loan to supplement your social security and other income without tapping into your investment portfolio.
The Homebody
No reason to move? Get rid of your monthly mortgage payments and improve your life.*
The New Homebuyer
Use a Reverse to Purchase a new home and enjoy retirement without a monthly mortgage payment.*
The Safety-Net Seeker
Be prepared with a Reverse mortgage line of credit that will grow over time for a rainy day or whenever you want.*
The Eager Retiree
Ready to retire early? Eliminate your mortgage payments and get your cash out to accelerate to the next phase of your life.*
How a Reverse Mortgage Loan Works
Reverse mortgage loans enable borrowers to access their home equity without having to pay principal and interest.* It’s called a “reverse mortgage” because the lender makes payments to the borrower. The loan is repaid when the last borrower or eligible non-borrowing spouse passes away, leaves the house or sells the house.
- The borrower always remains the owner of the home and retains title.*
- The amount you can borrow depends on your age, property value, interest rate, etc. The older you are, the more of your equity you’ll be able to access.
- The borrower must continue to pay property taxes and homeowner’s insurance, and must keep the house in good condition.
- The borrower will never owe more than the house is worth, because the Reverse mortgage is a non-recourse loan. If the loan balance is higher than the home’s value, the Federal Housing Administration (FHA) will cover the difference.
- There are many different types of reverse mortgages and the funds can be disbursed in a number of ways according to your needs.
Who Qualifies for a Reverse Mortgage Loan
Traditional reverse mortgages were established in 1989 to help homeowners aged over 62. As a government-insured loan, there are, of course, important requirements borrowers must meet to qualify:
- You must be at least 62 years old
- You must own your home
- The home must be your primary residence
- And more…
Features and Safeguards
The HECM Reverse mortgage loan has been improved over the years so that it can better meet your needs. There are important safeguards in place to ensure that it continues to help homeowners for years to come.
- You must complete a Reverse mortgage counseling with an independent counseling agency and receive your certificate
- You must undergo a financial assessment to make sure you are able to meet the financial obligations of the loan, which includes the ability to pay your property taxes and homeowners insurance
- If your spouse is younger than 62, they can qualify as an eligible non-borrowing spouse and remain in the home even if you leave or pass away, as long as they continue to meet all loan obligations.*