The borrower must occupy a home as a primary residence and is responsible for payment of property taxes, homeowner's insurance, the costs of home maintenance and any HOA fees.
How much money can I get?
The amount of funds available are based on a number of factors including the product you select. The proceeds available are calculated based on the youngest homeowner's age, current interest rates and the lesser of the appraised value of your home, the sales price of FHA Maximum Lending Limit. Currently, the FHA Maximum Lending Limit is $679,650.
What if I have an existing mortgage?
If you currently have a mortgage on your home, the proceeds from the Reverse Mortgage is used to eliminate your current mortgage, in many cases the homeowner's obtain a Reverse Mortgage for this reason alone.
Will a Reverse Mortgage affect Social Security or Medicare?
A Reverse Mortgage doesn't typically impact your Social Security or Medicare benefits, but benefits do vary state by state, be sure to consult a benefit professional.
When do I have to pay back the Reverse Mortgage?
The Reverse Mortgage becomes due and payable when the last remaining homeowner sells the property, permanently vacates the home or passes away.
Can I use a Reverse Mortgage to Purchase a home?
Yes. With a Reverse Mortgage Purchase Loan, qualified homeowner's use their loan proceeds to purchase the home. Typically for downsizing or relocating to an active adult community or moving closer to their families.
What Documents Do I Need to Apply?
Copy of Driver's License or photo ID
Copy of Social Security or Medicare card
Proof of current year's Property Tax payments
Copies of last two year's Federal Tax Returns
Copies of last two year's W-2's and last 30 days pay stub if currently employed
1099 Statement for Social Security & Pension income received
Copy of Homeowners Insurance Declaration page
Copy of checking, savings, and investment account statements
Copy of both sides of current Mortgage Statement (if applicable)
Copy of Living Trust, Original POAs, Guardianship and Death Certificates (if applicable)
Copy of HUD 1/Settlement Statement for current mortgage. (If unavailable, sign Borrower Non-HECM Loan Certification form)
Other documents may be needed as part of the loan process. Your loan officer will advise you of any other documentation needed.
*Any information gathered is held in the strictest confidence and is only used for the purposes of determining your eligibility for HECM loan.
How Can I Use My Reverse Mortgage?
1. Pay off your mortgage to eliminate your monthly mortgage payment*. 2. Remodel your home to accommodate aging in place. 3. Maintain a line of credit (that grows) for health emergencies and surprises. 4. Cover monthly expenses and hold on to other assets while their value continues to grow. 5. Cover monthly expenses and avoid selling assets at depressed values. 6. Pay for health insurance during early retirement years until Medicare eligible at 65. 7. Pay your Medicare Part B and Part D costs. 8. Combine life tenure payments with Social Security and income generated by assets to replace your salary and continue a monthly routine of paying bills from new income. 9. Pay for your children's or grandchildren's college or professional education. 10. Maintain a "standby" cash reserve to get you through the ups and downs of investment markets and provide more flexibility. 11. Combine proceeds with the sale of your current home to buy a new home without a mortgage and monthly mortgage payments. 12. Pay for long-term health care needs. 13. Fill the gap in a retirement plan caused by lower than expected returns on your assets. 14. Pay for short-term in-home care or physical therapy following an accident or medical episode. 15. Pay for a retirement plan, estate plan or a will. 16. Convert a room or basement to a living facility for an aging parent, relative or caregiver. 17. Set up transportation arrangements for when you are no longer comfortable driving. 18. Create a set aside to pay real estate taxes and property insurance. 19. Delay collecting Social Security benefit until payments are maximized. 20. Consolidate credit card debt. 21. Cover monthly expenses between jobs without utilizing other saved assets. 22. Cover expenses and avoid capital gains tax consequences of selling o other assets. 23. Purchase health-related technology that enables you to live at home alone. 24. Help your adult children through family emergencies. 25. HAVE FUN! Buy a new car, take a dream vacation and enjoy your retirement.
For more information or to set up a convenient meeting, call Dan at (831) 423-2900 or fill out the contact form to the right.