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Introduction to Reverse Mortgage Loans

Many homeowners have found that a reverse mortgage loan is a great way for them to take advantage of the equity they have built up in their homes.

A reverse mortgage loan is different than a traditional mortgage. With a traditional mortgage loan you make monthly mortgage payments, but with a reverse mortgage loan the lender pays you money through monthly installments, a one-time lump sum payment, a line of credit or a combination of a line of credit and monthly installments. The money that you receive is dependent on your age, the value of your home and the current interest rate.

One of the great advantages of a reverse mortgage loan is that you are not required to pay the loan back until the home is no longer your primary residence or you fail to maintain the home, or fail to pay property taxes and/or homeowner's insurance or do not otherwise comply with the terms of the loan.

If you’re aged 62 or older and own your home you might be eligible for a reverse mortgage loan. Contact us to find out more about reverse mortgage loans and ways to make it work for you, or apply now and start the process of tapping the equity in your home.

Are Reverse Mortgage Loans Safe?

You’ve worked hard to pay the mortgage on your home. With a reverse mortgage loan you can receive a portion of the equity that you earned. A federally insured HECM reverse mortgage loan can help you unlock that equity by increasing your monthly cash flow. Rest easy knowing you’re protected because with a reverse mortgage loan you can:

  • Access the equity in your home and stay in your home as long as you want. However, if you move, pass away or fail to pay property taxes or home owners insurance or otherwise fail to comply with the loan terms then you could be forced to sell your home or repay the loan.
  • Receive an annuity-like stream of cash flow for as long as you, the borrower(s) remain in the home, maintain the home, continue to stay current with property tax and homeowner's insurance payments and otherwise comply with the loan terms. Some borrowers elect to receive a lump-sum payment rather than the monthly payments.

Speak with one of our professionals today and learn how you can make the most of a reverse mortgage loan.

If you're ready to get started on your reverse mortgage loan - apply now.

These materials are not from HUD or FHA and were not approved by HUD or a government agency.

Steps to getting a Reverse Mortgage Loan

Below is the most common process for getting a reverse mortgage loan. Our professionals are eager to help you understand the reverse mortgage loan process. Please contact us with any questions.

Step 1 - Research Reverse Mortgage Loans
Speak with a mortgage professional about reverse mortgage loan options. Familiarize yourself with the various types of reverse mortgage loans and pick the one that is right for you.

Step 2 - Meet with a HUD approved counselor
In order to receive a reverse mortgage loan you must meet with an HUD approved councilor who will help you understand what it means to have a reverse mortgage loan. Independent HUD counseling typically costs $125 an we would be happy to provide you with a list of HUD approved counselors in your area.

Step 3 - Fill out our Reverse Mortgage Loan application
After you’ve determined which reverse mortgage loan option best suits you fill out our reverse mortgage loan application by clicking here. Your information is securely stored and transmitted.

Step 4 - Your application is processed and your home is appraised
While your application is being processed a licensed appraiser will determine if your house needs any kind of repair. Any problems must be fixed before you can be approved.

Step 5 - Your loan reaches underwriting
All details are worked out and your loan is underwritten. Additionally it will be determined whether you’ve been approved or not.

Step 6 - Your loan reaches closing
Once you are approved your loan will enter closing where you’ll get the chance to review the terms and sign the paperwork.

Step 7 - Receive your payments
After closing you’ll have three business days in which to cancel the loan. Once that grace period is up, you’ll start to receive the reverse mortgage loan proceeds according to the manner that you have elected: one-time lump sum payment, monthly installments, as a line of credit or as a combination of a line of credit and monthly installments.

Step 8 - Repaying your Reverse Mortgage Loan
Your reverse mortgage loan becomes due under the following circumstances.

  • Homeowner death (unless the home continues to be the primary residence for a non-borrowing spouse)
  • Sale of home
  • The home is no longer the borrower or non-borrowing spouse's primary residence.
  • Failure to maintain insurance, property taxes or otherwise comply with loan terms.
  • Any other event of default. (Failure to pay property taxes, Failure to keep the home in good repair, Failure to insure the home, Taking of new debt on the home, Bankruptcy, Abandonment or donation of the home, Eminent domain)

Jumbo Reverse Mortgages

What if you could access millions in home equity?

You've spent years investing in your home and you deserve to get the most out of your hard-earned equity. FHA-insured Home Equity Conversion Mortgage loans have a maximum claim amount limit up to $6million. Access more with the Jumbo Reverse Mortgage Loan.

Eligibility: Do you meet the following criteria?

  • Age 62 or older (all borrowers must be age 62 or older)
  • Own your home and occupy your home as your primary residence
  • Meet loan-to-value requirements

With the Jumbo Reverse Mortgage Loan, you can enjoy these great features:

  • Gain access to more equity on high-value properties
  • No capital gains or income tax on loan distributions.*
  • Access all of your loan proceeds in one lump sum.
  • No mortgage insurance required.
  • No monthly mortgage payments (borrowers must continue to pay property taxes, homeowner's insurance, and home maintenance costs.)

These materials are not from HUD or FHA and were not approved by HUD or a government agency.

*Capital cains taxes are only due upon a sale. A Jumbo Reverse Mortgage is a loan, secured by a mortgage on your home, and does not require sale of the home. The proceeds of a loan are not taxable as income.