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    Reverse Mortgages

    The Golden Stage of Life

Reverse Mortgage Information

What is a reverse mortgage

Until recently, seniors 62 years of age and older have not had the best of choices when it came to getting cash from their homes. Traditional home loans only offered the option of either selling one’s house or borrowing against its equity. Obviously, this meant moving into a new home or taking on monthly re-payments; not exactly the most appealing choices for those who have put down permanent roots.

Take for example Doug and Sharon Jones - a couple in their late 60's who have called their place home for over 30 years. After nearly 15 years of enhancements and home improvements, Mr. and Mrs. Jones are looking forward to spending the rest of their lives in that house – uprooting is the last thing they want to do.

Now, with all of their financial investments behind them, Doug and Sharon have decided they would like to spend some time traveling the world. They are also interested in finding a way to generate extra income in order to supplement their retirement and pay for the cost of prescription medications.

Tax Free Income

With reverse mortgages coming on the scene, Mr. and Mrs. Jones now have some appealing cash-flow alternatives that they didn’t have before. These loan plans will allow the couple to convert their home equity into tax-free income* without having to sell their current home or take on new monthly mortgage payments. They can also receive cash payments and credit lines without incurring monthly payments or having an existing income; nice options traditional home loans do not offer.

For seniors and maturing Baby Boomers, the idea of staying put while collecting monthly advances can be very attractive. Many of them have no desire to relocate. Instead, they prefer cash advances to pay off debts, improve and repair their homes, or travel the world.

Add to this not having to pay the debt until a future time, and having no monthly payments, and a reverse mortgage becomes the ideal option for those in their golden years.

* We strongly recommend consulting your tax advisor when choosing a reverse mortgage plan.

A Senior Moment

In order to apply for a reverse mortgage you must be 62 years of age or older. All owners who are on the title deed must meet this age requirement, as well as apply for and sign the loan agreements. Lastly, the home must remain the applicants’ principle place of residence.

One of the most attractive benefits of a reverse mortgage is there are no income or medical requirements to meet in order to qualify. Because you end up receiving money instead of paying monthly payments, income plays no part in your eligibility for a reverse mortgage.

Single family residences are most commonly eligible for reverse mortgages, although some programs do accept other types of property, such as manufactured houses and condominiums. The only exception would be mobile homes and co-ops, which generally do not qualify for reverse mortgages.

Pre-Mortgage Counseling

In order to ensure that homeowners are fully aware of the financial ramifications of obtaining a reverse mortgage, you must undergo counseling with an unbiased third party before completing a loan. HUD and AARP oversee a network of counselors who can provide this service, and it should be offered for a nominal fee or at no charge.

We specialize in developing loan programs for mature borrowers. Our staff is dedicated to helping you obtain the reverse mortgage plan that will be most valuable for your golden years. Give us a call now to get started!