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A Reverse Mortgage is a special type of loan exclusively for seniors 62 and older. A Reverse Mortgage allows you to convert the equity in your home into cash providing financial security to fully enjoy your retirement years. Instead of making monthly payments to a lender, a lender lets you access some of the equity in your home through either a lump sum payment, monthly payments or through a line of credit – whichever you prefer. While a reverse mortgage loan is outstanding, you continue to own the home and hold title to it.
EDUCATE: Meet with a loan officer to assess your needs and explain benefits, options and costs associated with a Reverse Mortgage.
COUNSEL: The government requires unbiased counseling for all borrowers to be sure you understand all aspects of your Reverse Mortgage. Usually this takes about 60 minutes of your time.
APPLY: If you’re at least 62 years old and own a home, you may qualify. We’ll even help you gather required documents, and guide you through the application.
APPRAISE, PROCESS, APPROVE: After we gather all the completed paperwork, your property will be appraised, and your application will be reviewed and processed. Once the application is approved, we set a date with you to close the loan.
CLOSE AND FUND: After the rescission period, you get your well-deserved money so you can breathe easier and enjoy a more comfortable retirement.
Yes. And that’s a GOOD thing. We, and the government, want you to know exactly what to expect with a Reverse Mortgage. Counseling can be done in person or over the phone, and it only takes about 60 minutes.
No. Use the money for whatever you want: medical bills or other outstanding debt, long-term health care, travel, home improvements. The options are as limitless as your imagination.
The home must meet FHA property standards and flood requirements, and be one of the following: single-family home; or 2-to-4 unit home with 1 unit occupied by the borrower; or HUD-approved condominium. For new construction, a Certificate of Occupancy or equivalent must be issued before you apply.
The loan must be repaid when the last surviving borrower passes or no longer lives in the home. Because HECM (Home Equity Conversion Mortgage) Reverse Mortgages are federally insured loans, you and your heirs are not liable for any deficiency if, when the loan becomes due, the home sells for a fair market price that's less than the loan balance.
After the last surviving spouse dies, the heirs typically either pay off the loan and keep the home or sell the property and keep any profit that exists after the reverse mortgage is paid off.
You can get your money through a lump sum at closing, through a line of credit or through monthly payments to you. Aren't options great?
This is a required part of your loan and it protects you so that you will not owe more money in the event sale of the property brings an amount insufficient to pay off the loan.
The loan is usually paid back through sale of the home after the last surviving spouse passes away or moves out for one year or longer. You never have to make principal and interest payments while you live in the home - no matter how long you live.
No! The money from the Reverse Mortgage is considered loan proceeds and therefore is not considered income, but you should consult with your tax advisor about your specific situation.
Not necessarily. But this may add some risk. So please be sure to inform your loan officer if your spouse is under 62.
The loan balance is due after the last surviving spouse passes, but because Reverse Mortgages are federally insured loans, it will not affect your heirs if the home fails to sell for enough to satisfy the loan.
Reverse Mortgages typically don't impact these or pension benefits, but since programs vary from state to state, be sure to consult your trusted financial advisor.
UFA (formerly Urban Financial Group) is a lender specializing in reverse mortgages and ranks among the top three originators in the United States. We specialize in this business, allowing homeowners 62 and older to unlock a portion of their home’s equity to use for their needs. We are a trusted resource; our goal is matching customers with the right product empowering them with the financial independence they’ve earned. Our retail division is licensed in most states and Puerto Rico. UFA is a proud member of the National Reverse Mortgages Lenders Association (NRMLA) — which works to strengthen and safeguard reverse mortgages.