Reverse Mortgages

A Reverse Mortgage is a very unique home loan that will allow a homeowner, age 62 or older, to convert a large portion of the equity in their home into tax-free cash. Unlike a traditional home equity loan, no monthly repayments are ever required. And, there is no cash outlay required at settlement! Thousands of Americans have “reversed roles” and are letting their lenders pay them--while they remain in their home!

Improve your life by cashing in on your home’s equity 
Whether you are needing to financing for a home improvement, paying off a current mortgage, supplementing your retirement income, or paying for healthcare expenses, many older homeowners are considering reverse mortgages. These loans convert a portion of the home's equity into cash without having to sell the property or take on supplemental bills.


In a traditional mortgage, homeowners make monthly payments to the mortgage lender. However, in a reverse mortgage, money is received from the lender and is usually not required to have to pay it back for as long as you live in your home. Instead, the loan must be repaid when the homeowner passes away, whent the property is sold, or or the homeowner no longer lives in the home (as a primary residence). 

To qualify for most reverse mortgages, homewoners must be at least 62 and the home is the primary residence. The proceeds of a reverse mortgage (without other features, like an annuity) are generally tax-free, and many reverse mortgages have no income restrictions.


Three Types of Reverse Mortgages 
  1. Single-purpose reverse mortgages, which are offered by some state and local government agencies and nonprofit organizations’
  2. Federally insured reverse mortgages, which are known as Home Equity Conversion Mortgages (HECMs), and are backed by the U. S. Department of Housing and Urban Development (HUD); and
  3. Proprietary reverse mortgages, which are private loans that are backed by the companies that develop them.

 

It is best to contact an experienced Loan Officer at HomeFirst Mortgage to see if a reverse mortgage could be beneficial for you!