Reverse Mortgages

Much has been made about the resurgence of the 1st time home buyer, how they will stimulate the housing market through the use of government loan programs – FHA, VA, etc. What about those older home owners, above 62 years of age, who have paid their homes off or have a ton of equity – what options do they have?

With over 20 million seniors owing homes, Reverse Mortgages are growing in popularity.

The main benefit of a Reverse Mortgage is the senior borrows against the equity in their home; in the form of a lump sum, a monthly fixed amount, a line of equity or a combination of. The amount of the mortgage is dependent upon the age of the senior, the equity in their property and the current interest rates.

There is no verification or proof of income and assets to qualify for a Reverse Mortgage.

One key benefit about Reverse Mortgages – the senior or their family will never be responsible for more than what their home is worth. There is no repayment unless the home is sold or the senior is no longer living in the home.

As with any loan program, consult a “trained” loan expert that will advise your family member, friend or client of their best options.