It’s simple and easy. First, the property owner must be 62 or older. If the property owners are married, only one of the spouses need to be 62. If the property owners are unmarried such as domestic partners, brothers, sisters, parents and adult children, then both property owners must be at least 62. Most importantly, you must own and occupy the home as your primary residence and have adequate equity to qualify for a loan. Loan calculations are based on the youngest borrower involved in the transaction.

The reverse mortgage industry now reviews income and credit history as of April 27, 2015. The applicant’s income and expenses are reviewed to insure the property taxes as well as the home owner’s insurance payments will be consistently maintained. A credit report is reviewed for any derogatory accounts. If derogatory accounts are found in the credit report, they can be addressed by the applicant with a letter of explanation outlining the extenuating circumstances. Credit scores are not a factor in the credit report review process.

No, there are no monthly mortgage payments. However, payment of property taxes, home owners insurance, and the upkeep of the home is your responsibility.

No, the bank never owns your home. You remain the owner of your home and can stay as long as you wish. You have no monthly mortgage payments. As a homeowner, you must continue to pay property taxes, home insurance, and continue to maintain the home during the loan period.

There are three factors that determine how much you can borrow: Age of the youngest borrower, home value, and current interest rates. We then calculate the amount you’ll receive according to the official home value. Your Reverse Mortgage Educator will be right there to answer any questions or concerns you may have.

That’s okay. If you qualify, a reverse mortgage will first pay off your existing mortgage, then give you the remaining proceeds. Many times, we advise our clients to use the Reverse Mortgage to eliminate monthly mortgage payments on their traditional mortgage.

When the last remaining borrower moves out, the home is sold. The loan is repaid (including interest and any fees) and the remaining equity left over goes to your heirs. If your children choose to keep the house, they may do so by paying off the loan.

A Reverse Mortgage is a government-insured, non-recourse loan, meaning that you can never owe more on the loan than what the house is worth at the time the loan is paid back. You and your heirs have no obligation and can simply walk away.

In general, your costs are the same as a traditional forward mortgage: escrow, title fee, and appraisal fee. With a Reverse Mortgage, you purchase a unique HUD government insurance plan that protects you, your heirs, and your lender in the event your mortgage balance exceeds your value. This is why your funds are guaranteed and why it’s truly a non-recourse loan.