Help For Mortgages provides helpful information for all types of mortgages. Advisors Mortgage, a 21 year old mortgage banker, offers Reverse Mortgages, VA Loans, FHA Loans, Construction Loans, Conventional, and other types of mortgages. We begin with a focus on Reverse Mortgages.
LIFESTYLE and WORKING PAST RETIREMENT
Many seniors are continuing to work past retirement age these days. When we speak with senior homeowners about the reverse mortgage program, we often speak about lifestyle. Lifestyle is defined as your typical way of life, but lifestyle and what that means from one person to the next can vary greatly. If you've been depending on social security or a pension and won't have enough money for a comfortable retirement, a reverse mortgage offers some options. If you are financially comfortable but want to utilize the equity in your home, a reverse mortgage might be worth considering. (For more information, choose any of the links at the top of the page.)
A Reverse Mortgage is a special type of loan for homeowners age 62 years and above who want to convert part of the equity in their home into tax-free cash without having to sell the home, give up title or take on a new monthly mortgage payment. The correct name of the program is HECM, Home Equity Conversion Mortgage. You can do a HECM as a refinance on your current home or as a purchase on another home.
MAKE NO Monthly Mortgage Payments or Pay WHAT You'd like WHEN you want! There are no monthly mortgage payments required with a reverse mortgage.
You have the option of making mortgage payments any time you like or NOT making any mortgage payments at all! You can pay all or part of your HECM loan at any time throughout the year and protect some of the equity in your home. Pre-payment penalties are not a feature of reverse mortgages!
Tax-free cash! There are no income taxes on a reverse mortgage. A reverse mortgage is not considered income.
You retain ownership of your home; you remain on title. If you have a life estate, trust, or guardianship, you can still do a reverse mortgage.
A Reverse Mortgage will not affect Social Security or Medicare. Reverse mortgage proceeds are not considered income, but there are certain parameters of which you must be aware regarding financial assistance programs. Your eligibility for certain government programs such as Medicaid, Supplemental Security Income (SSI), or community assistance programs may be affected by having a reverse mortgage. If your loan proceeds are sitting in your bank account, they could be counted as assets and affect your Medicaid eligibility. (Consult with your financial advisor and Medicaid).
Non-borrowing spouses (under age 62) can remain in the home after your passing. If your spouse is underage and you pass away, your spouse can continue to line in the home as their primary residence. (See below)
A Reverse Mortgage frees up the equity in your home that has been sitting there virtually untapped and converts it into tax-free cash. This can mean financial freedom and financial stability. If you don’t have a savings cushion, if you don’t have a diverse portfolio of assets, if you are relying on social security checks or accessing your taxable funds, consider the reverse mortgage.
FOR HOW TO QUALIFY FOR A REVERSE MORTGAGE, CLICK BELOW.
Ever dream of having more cash on hand to enjoy the finer things in life?
You live in a home that you love; you've enjoyed barbeques, parties, and visits from loved ones. It's where you raised a family. You'd like to stay in the same home that provides you with a comfortable space. Isn't it time your biggest investment, your home, finally paid you back? It just makes sense. You can use the proceeds however you want.
Facts about the reverse mortgage program:
• The option of making or NOT making mortgage payments
• You retain ownership of your home & remain on title
• No health requirements - no credit score requirement
• No impact on Medicare or Social Security
• Tax-free proceeds - A reverse mortgage does not affect your income taxes as it is equity-based and not considered income
• Insured by the FHA, Federal Housing Administration
• You continue to pay taxes, homeowners insurance, HOA fees, and other housing expenses as well as maintain your home.
Reverse Mortgage Plans:
* Monthly Proceeds (tenure)
* Cash Out disbursed over 2 years (first draw at closing and the remainder 365 days after the funding of your loan)
* Line of Credit with a growth rate on the unused portion of monies over time
* Combination of all three
The maximum lending limit on the FHA HECM reverse mortgage will be $970,800 beginning January 1, 2022 for all new applications who choose the FHA HECM. Now, that doesn't mean you receive that ENTIRE amount. It all depends on the age of the youngest borrower, interest rates, and the appraised value of your home. And with the HECM, the older you are, the more funds you receive.
Because the HECM loan does not require any monthly mortgage payments, it is called a rising debt loan, the opposite of a typical mortgage where you make monthly mortgage payments and the balance does down. For this reason, the reverse mortgage balance can potentially end up higher than the value of your home. However, written into the HECM transaction is an important safeguard called "non-recourse." Simply put, the house stands for the debt.
You are NOT personally responsible for the reverse mortgage debt nor are your heirs.
Non-recourse debt is a type of loan secured by collateral which is usually property. In the case of mortgages, the collateral is your home. A reverse mortgage is a loan in which the lender may look only to the property for repayment of the mortgage debt even IF what is owed the lender is more than what the home is worth. With a reverse mortgage, none of your assets can be used to satisfy the reverse mortgage debt whether you have investments, bank accounts, other properties, etc. The reverse mortgage closing documents state clearly that the borrower has no personal liability for the reverse mortgage debt:
HOME EQUITY CONVERSION MORTGAGE DEED OF TRUST states in section 11:
"No Deficiency Judgment. Borrower shall have no personal liability for payment of the debt secured by this Security Instrument. Lender may enforce the debt only through sale of the Property. Lender shall not be permitted to obtain a deficiency judgment against Borrower if the Security Instrument is foreclosed. If this Security Instrument is assigned to the Commissioner upon demand by the Commissioner, Borrower shall not be liable for any difference between the mortgage insurance benefits paid to Lender and the outstanding indebtedness, including accrued interest, owed by Borrower at the time of the assignment."
The name HECM means Home Equity Conversion Mortgage. A reverse mortgage is the conversion of your home equity into usable tax-free proceeds and is the reverse of a traditional mortgage. There are no monthly mortgage payments required with a reverse mortgage, and the proceeds are tax free. (SEE FAQ-QUESTIONS PEOPLEL ASK)
That all depends on how much you might owe in mortgages and liens on your home and if there is enough equity left for a reverse mortgage. As long as there is enough remaining equity, you should be able to qualify. A free proposal from a Reverse Mortgage Specialist with Advisors Mortgage will provide you with helpful information so you can make an informed decision.
HECM counseling is a HUD requirement of the reverse mortgage program. HECM counseling by an independent HUD-approved counselor will provide you with information and a HECM counseling certificate so your loan can move forward. Call Advisors Mortgage to receive a list of HECM counselors in your area along with their fees.
Whether your spouse is underage and considered a non-borrowing spouse, they will be able to remain in the home after your passing. If you should permanently move to an assisted living or mental health facility, they will still be able to remain in the home. (See your mortgage specialist for more details and our FAQ page).
It's your equity from your home that you are borrowing, and you can use it however you see fit. Buy a new car, take the kids and grandkids on vacation, or just enjoy your retirement. A reverse mortgage is designed to make life easier while giving you the freedom to do the things you've been wanting to do.
You are entitled to a free reverse mortgage proposal from an Advisors Mortgage loan specialist. Call or fill out our form to request a free, no-obligation consultation so you can determine how much money you qualify to receive. Without seeing numbers and figures, how can you tell if a reverse mortgage is right for you?
We hear the phrase, "It's too good to be true" all the time. Although the reverse mortgage is not the perfect vehicle for every senior homeowner, it is a wonderful product for the right borrower. The reverse mortgage is good and for all the right reasons. It's a program designed for senior homeowners whose goal is to remain in their homes and also improve their quality of life. The only federally insured reverse mortgage is the FHA HECM, Home Equity Conversion Mortgage, insured by the FHA (Federal Housing Administration) and regulated by HUD (Housing and Urban Development).
When did the FHA-INSURED HECM Start?
The reverse mortgage is not new, but the FHA HECM had its inception in 1987 when the 100th Congress passed the Housing and Community Development Act. The act was signed into law by President Ronald Reagan in February 1988. The law gave the Department of Housing and Urban Development the authority to extend FHA insurance coverage to also include reverse mortgages. FHA mortgage insurance has given the HECM program credibility. The federally insured reverse mortgage should inspire confidence from all those considering a reverse mortgage for their home.
Reverse mortgages have helped over 1 million seniors to have confidence in their future. The reverse mortgage can be a channel to financial independence and provide peace of mind in your retirement years. If you are at least 62 years of ago, own your own home, and have equity in your home, we'd like to send you a free quote!
Naturally, not everyone can benefit from reverse mortgages in the same way, and there is a cost to getting a reverse mortgage. There are qualifying factors with all mortgages, and reverse mortgages are no different. But they are viable, and they do work in many situations. Reverse mortgages have saved the lives of countless seniors facing foreclosure and put a spring in the steps of many seniors who didn't know where to turn for some needed cash. For the right person, a reverse mortgage can be life-changing.
Questions? Call Advisors Mortgage! Advisors Mortgage: 888-843-9797 or 631-804-9044
Home Equity = Your Retirement Plan
Piggy banks serve one purpose, to give back what we have saved over time. Did you ever think of your home as a piggy bank? Well, it is. It is your home's equity that you have "saved" over time which is available to you as your retirement plan". Your home is waiting to give up its wealth of equity for your benefit. Why not use your home as your personal retirement plan and let your home work for you? Using a reverse mortgage as a retirement planning tool can change the way you look at retiring. Whatever your reason for examining reverse mortgages, your retirement plan might be wrapped up in your home. You just need to use it!
Proprietary or jumbo reverse mortgages may be the answer. Jumbo reverse mortgages for either purchasing or refinancing have a minimum home value of $500,000 with a maximum home value of $10,000,000. Maximum loan amounts go up to $4,000,000. One to four family homes are eligible for this program along with qualified condominiums. Click JUMBO REVERSE MORTGAGES to learn more.
(All Jumbo Reverse Mortgages are arranged through third party providers.)
With the proprietary reverse mortgage, you can refinance your current home, purchase a new home or downsize to a lower-cost home.
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