Everything you should know
Reverse mortgages are a powerful tool to help eligible homeowners obtain tax-free cash flow. Thousands of people have already used them to enhance their retirement
Lifestyle, repair their home or make it safer, pay off credit cards or medical bills, pay for in-home assistance, gift some to their heirs now, or take that dreamed of vacation.
Even so-like with anything else where money is involved - it is wise to be prudent and informed about how to protect your own financial interests. So we encourage borrowers to include family members or trusted advisors, in addition to the mandatory HUD Counseling that is required.
So What Is A Reverse Mortgage?
The key word is "Reverse". Unlike a Conventional Forward Mortgage borrowers do not pay a mortgage payment each month. Instead a payment is made to them! A Reverse Mortgage helps seniors enjoy their retirement years by providing financial security that can improve quality of life and relieve cash worries that expected or unexpected situations can bring. After many years of working, retirement should be something to be enjoyed.
The proceeds from a Reverse Mortgage can be disbursed as:
A lump sum,
A monthly cash advances or
A line of credit or
Any combination of these payments.
Monthly advances can be given as Term (set for a period of time) or Tenure (for as long as the borrowers live)
The funds are tax-free* and do not affect Social Security or Medicare.
Most Reverse Mortgages are insured by the Federal Government through FHA, except proprietary loans developed by the banks.
To further insure the safety of a Reverse Mortgage it is mandatory for any senior, after doing an application, to meet with a Government-approved counselor.
This mandatory counseling session provided by an Independent third party HUD-approved counseling agency is done so that the senior(s) are fully informed, knowledgeable and comfortable with the Reverse Mortgage program they are considering.
The amount of the Reverse Mortgage loan is based on the senior borrower's age, value of the home and the prevailing interest rate.
There are No income, Credit or Asset requirements.
The loan does not come due until the borrower(s) moves, sells or passes away.
The Loan Process is Simple
1. Preliminary information is taken for the Reverse Mortgage loan.
2. Questions are addressed and loan application is completed.
3. The mandatory 3rd party counseling is done.
4. Counseling certificate is received, signed and forwarded to M & T Bank
5. Appraisal, Termite inspection and Credit Report are ordered.
6. Title work is done and settlement with a Settlement company is arranged.
7. Loan receives approval, conditions are met and a "Clear to Close" is given.
8. Borrower(s) go to Settlement/Closing.
9. After the 3 days recession period the funds are disbursed
The complete process takes approximately 30-60 days.
*Consult your tax advisor if you are on S.S.I. or Medicaid
For Assistance Call Your
Reverse Mortgage Specialist:
Gloria de Gaston Boone
703/244-8151 24/7
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