A reverse Mortgage, also called HECM - Home Equity Conversion Mortgage, is a type of a non-recourse loan (homeowner of their heirs will never be asked to pay back more than the value of the home, even if the debt has grown to be greater than the value) available to homeowners, 62 years or older, that allows them to convert part of the equity in their home into tax-tree cash. There is no repayment while the senior occupies the property as their primary residence and pays their required obligations (tax/insurance/HOA/maintenance).
Why a Reverse Mortgage?
- Seniors will never have to leave their home and retain title to the home
- No debt-to-income, asset or credit qualifications*
- Does not affect social security or medicare
- No monthly mortgage payments are required for as long as you live in the home and pay taxes and insurance*
- No repayment of loan until the last borrower permanently moves out
- Proceeds are tax-free - Interest may be deductible upon load repayment(please consult with a tax advisor)
- A great way of purchasing a home when downsizing or up-sizing without having to use all your personal resources all within a single transaction. You will be able to afford a higher valued home!
- Want to buy a vacation home? This might be the perfect solution!
- There are no credit score requirements. The amount of the qualifying mortgage is based on a sales price of a new home, borrower's age and current rates
*However, you must continue to pay your real estate taxes, homeowner's insurance, HOA dues if applicable, and maintain the home in average condition