Reverse Mortgage FAQs

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

-OR-

  • 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.