Reverse Mortgage Help
Need simple, straightforward answers to your questions about reverse mortgages? Find what youneed with Inlanta Mortgage's reverse mortgage FAQ list.
Click on the questions below to reveal the answer to the most commonly asked questions. |
|
 |
FAQ: What is a Reverse Mortgage?
ANSWER:
The U.S. Department of Housing and Development (HUD) created reverse mortgages to give older Americans a greater sense of financial security. A reverse mortgage is a specialized loan that enables senior homeowners (62 years or older) to convert home equity into tax-free* income without having to sell the home, give up the title or take on a new monthly mortgage payment. The income received from a reverse mortgage can be used for anything, including; supplementing retirement income, home improvements, health care expenses, paying off debt, vacations, property taxes and preventing foreclosure. Unlike a traditional home equity loan or second mortgage, no repayment is required until the borrowers no longer use the home as their principal residence. With a reverse mortgage, you remain the owner of your home just like when you had a standard mortgage. You are still responsible for paying your property taxes and home-owner insurance and for making property repairs.
*Consult your tax advisor. |
FAQ: How Do I Qualify?
ANSWER:
To qualify for a reverse mortgage:
- You must be at least 62 years old. In the case of a couple or co-owners, both must be 62 if their names appear on the title to the home.
- You must have equity in your home. You may qualify even if you have an outstanding mortgage balance.
- You must reside in a single family dwelling, townhouse, condominium, detached home, or certain manufactured homes.
- 1-4 family, co-op, second homes and "Gentleman" farms are also eligible for some programs.
|
FAQ: How can I receive my money?
ANSWER:
The tax-free income you receive from a reverse mortgage can be paid to you in several ways including:
- All at once, in a single lump sum
- As a monthly cash advance
- As a line of credit that lets you decide when and how much of your cash is paid to you
- As a combination of these payment methods
|
FAQ: Will the income affect my Social Security, Medicare or other benefits?
ANSWER:
Social Security and Medicare benefits are not affected. Supplemental Security Income (SSI) and Medicaid are not affected either, as long as all monthly cash advances are fully spent each month. |
FAQ: Are there restrictions on what I can do with the money?
ANSWER:
You can use the reverse mortgage income on anything you choose including; supplementing retirement income, home improvements, health care expenses, paying off debt, vacations, property taxes and preventing foreclosure. |
FAQ: When do I need to repay the loan?
ANSWER:
You do not need to repay the loan as long as you or one of the borrowers continues to live in the house and keeps the taxes and insurance current. You can never owe more than your home's value. Once you sell your home or no longer use it for your primary residence, you or your estate will repay the cash you received from the reverse mortgage, plus interest and other fees, to the lender. The remaining equity in your home belongs to you or to your heirs. The debt will never be passed along to the estate or heirs. |
Contact a Specialist Today!
+ DOWNLOAD MORE INFORMATION
For more information on Reverse Mortgages, read an article written by Gary Zimmermann, Reverse Mortgage Specialist, published in the September 2008 issue of The Mortgage Press!
+ VIEW ARTICLE |
|
BACK TO TOP
