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Contact Time: Mon-Fri: 9:00am-5:00pm EST
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Phone Number: 727.642.1166
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Contact Mail: [email protected]
A reverse mortgage program is intended for seniors, and it enables them to withdraw certain amounts of the equity in their homes. It is a safe plan, and it offers independence, safety, and peace of mind. It can be used for unforeseen medical expenses, retirement, home reconstruction, estate planning, and even travel.
There are no monthly payments. The concept of a reverse mortgage is not based on monthly installments.
It is possible. However, it is required to pay off the existing loan before or at the time of the settlement of the reverse mortgage. Frequently, clients use the reverse mortgage to refinance current loans.
In principle, yes. However, it is required that you are qualified by age and the primary Trustee.
Yes, you are qualified if your children are at least 62 years old and reside on the property. If not, in order to participate, you will need to take them off the title.
No, they are not considered income. The cash advances are tax-free loan proceeds distributions.
They are if they have been built after July 1976 and if they have a permanent foundation approved by the EHA. Before processing the reverse mortgage, a structural inspection will examine the house. Additional restrictions may apply if the home is located on leased land. Do not hesitate to contact us for further explanation.
No, the money is yours, and you can use it any way you like.
Apart from interests, there are the following four types of charges related to the reverse mortgage:
The cost appraisal is only out of pocket expense required for the participation in the reverse mortgage program.
In principle, yes. However, it is required that you are qualified by age and the primary Trustee.
It is possible to opt for Fixed Rate or Adjustable Rate (LIBOR). The type of the interest rate does not impact the number or any loan advances the Borrower is eligible to receive. However, it does affect the growth rate of the loan balance. It is required that to home is owned clear and free or that remaining mortgage balance is around 50%. It is possible to use the reverse mortgage to pay off the balance on any liens or loans.
It is necessary to have enough funds to pay annual property taxes. As funds grow annually at a given percentage rate, you can calculate the increase in property taxes.
If the Borrowers do not occupy the property as a principal residence for the subsequent 356 days in a row or if the Borrower do not comply with the loan agreement (i.e. Maintenance of Homeowner's Insurance or paying property tax), the loan is due and payable. Furthermore, according to the loan agreement, the Borrowers are in charge of maintaining the property in normal living conditions.
The loan proceeds are not income, and, hence, there is no effect on Medicare and Social Security as these programs are not based on need. However, we advise you to consult a benefits specialist if you have any questions related to SSI programs and the Medicaid in order to be disqualified for these public benefit programs.
a) All Homeowners must be at least 62 years old and the property must be their principal residence.
b) The home must be either owned free or clear or with a reasonable remaining mortgage balance (around 50%). It is possible to use the reverse mortgage to pay off any existing liens and loans.
c) The property must be a townhouse, condo, a single family, or up to a four-unit dwelling.
Yes, however, the loan cannot exceed 50% of the purchase price, and it is required that the property is your principal residence.
Maximum amount depends on the following factors:
There are various methods of receiving the loan proceeds. What homeowners will choose depends on their specific goals and needs. There are the following options: