If you’re an older homeowner and need help managing expenses, you might consider a reverse mortgage.

Reverse mortgages are increasing in popularity with seniors who have equity in their homes and want to remain in their homes or supplement their income.

What is a reverse mortgage?

A reverse mortgage is a home loan that you do not have to pay back for as long as you live in your home.  It can be paid to you in one lump sum, as a regular monthly income, or at the times and in the amounts you want. The loan and interest are repaid only when you sell your home, permanently move away, or die.

Insured by the US Federal Government, the Home Equity Conversion Mortgage (HECM) is FHA’s reverse mortgage program that enables you to withdraw a portion of your homes equity to use for home maintenance, repairs, or general living expenses.  Borrowers may reside in their homes indefinitely as long as property taxes and homeowners’ insurance are kept current.

HECMS’s are also a popular option to purchase a new primary residence.  This provides the ability to downsize or relocate from your current home as needed.

What is required for a Reverse Mortgage?

To be eligible for a HECM reverse mortgage, the primary borrower must be age 62 or older.  The other requirements for a HECM include:

• Must have at least 50% equity in the home
• Must live in the home as your primary residence
• Can’t be delinquent on any federal debt
• Continue to pay homeowners insurance, property taxes, and any homeowners association dues

Ready to get started?

If you are interested in learning more about a reverse mortgage, we are here to answer all of your questions.  We will walk through the numbers and the process, from application to closing.

Complete our Quote Request below or call us at 404-303-7411 to take the first step.