What is a reverse mortgage?
- A reverse mortgage allows homeowners who are 62 years or older to convert a portion of the equity in their homes into cash.
- No repayment is required as long as the borrower owns and lives in the home.
- The homeowner retains title and ownership of the home.
- Cash advances can be used for any purpose.
- There are limited income, asset, employment and credit requirements.
What can I use the money for?
The money from a Reverse Mortgage is commonly used for:
- Every day living expenses
- Pay off debts or mortgage
- Property taxes/home insurance
- Medical expenses or in-home care
- Home repairs
- Financial/retirement planning
How can I qualify?
- Any homeowner who is 62 years or older may be eligible
- Homeowner must be living in the home
How much money can I get?
The amount you can get depends on:
- Your age
- The value of your home
- Current interest rates
- The HUD loan limit in your area
How is it paid to me?
You can choose how to receive your money.
It can be taken:
- As a Lump Sum at the closing of the loan
- As a Monthly Cash Advance
- As a Line of Credit
- Any combination of the above three options
When do I pay it back?
When the last surviving spouse dies, sells the home, or permanently moves away for 12 months in a row.
Are reverse mortgages safe?
- Reverse Mortgages are insured by the U.S. Department of HUD.
- Payments to borrowers are guaranteed by the U.S. Government.
- Available through HUD Approved lenders.
- Independent HUD Approved counseling is required prior to application.
- Does not affect Social Security or Medicare benefits*
How do I apply for a reverse mortgage?
First, you must obtain a counseling certificate from a HUD Approved Counseling Agency. (David can supply you with a list of local counselors.)
After receiving your counseling certificate, you can make an application with David Blatt.
Under normal circumstances, the entire process should take approximately 45 – 60 days.
* Supplemental Security Income and Medicaid benefits may be affected. Get professional advice.