Loans Can Be Fun
If you’re 62 and older, you can use a reverse mortgage loan to purchase a new home, or turn your current home’s equity into cash. A reverse mortgage loan gives retirees the opportunity to potentially increase their purchase power or cash flow while eliminating monthly mortgage payments. You are still required to pay property taxes, homeowners insurance, and maintain the home. Here are just a few reasons why you should consider a reverse mortgage.
A LOAN THAT CONVERTS EQUITY TO CASH FOR MANY DIFFERENT USES
A reverse mortgage loan is a way to turn a portion of the equity in your home into cash. The proceeds from a reverse mortgage can be used to pay for unexpected expenses, such as nursing home costs or long term care. It could also provide you with additional cash flow for all the expenses you have, or allow you to purchase a new home with a lower down payment compared to using your cash to pay in full.
A SALE OR LIFETIME COMMITMENT
The deed is still in your name so you can move whenever you want. Most reverse mortgages are federally insured through the FHA. As long as you pay your property taxes, homeowner’s insurance, and maintenance costs your home cannot be foreclosed on. They will honor this commitment for life, or as long as you live in your home. However, you are allowed to change your mind and sell the home whenever you want if you wish to move to warmer climates, a smaller home, closer to your children, or whatever your choice may be.
One-to-four unit properties, PUDs, Townhouses, and FHA approved condos; all qualify for a reverse mortgage as long as they meet all of FHA safety guidelines. You can even purchase a double-wide manufactured home built after June 15, 1976 that is permanently affixed to a foundation on land you own. For a Home Equity Conversion Mortgage (HECM) reverse mortgage the maximum allowed home value is $970,800 for 2022, but if your home is worth more it could qualify for a jumbo loan product that is not backed by the FHA. If you would like more information about this type of (non-HECM) reverse mortgage loan, please contact us for more information.
Copyright©2022 Fairway Independent Mortgage Corporation (“Fairway”) NMLS#2289. 4750 S. Biltmore Lane, Madison, WI 53718, 1-866-912-4800. All rights reserved. Fairway is not affiliated with any government agencies. These materials are not from HUD or FHA and were not approved by HUD or a government agency. Reverse mortgage borrowers are required to obtain an eligibility certificate by receiving counseling sessions with a HUD-approved agency. The youngest borrower must be at least 62 years old. Monthly reverse mortgage advances may affect eligibility for some other programs. This is not an offer to enter into an agreement. Not all customers will qualify. Information, rates and programs are subject to change without notice. All products are subject to credit and property approval. Other restrictions and limitations may apply. Equal Housing Opportunity. “
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*A pre-qualification is not an approval of credit and does not signify that underwriting requirements have been met.
*Eligibility subject to program stipulations, qualifying factors, applicable income and debt-to-income (DTI) restrictions, and property limits. Grant amount varies based on credit score. Loans Can Be Fun is not affiliated with any government agencies. These materials are not from HUD or FHA and were not approved by HUD or a government agency.