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About Reverse Mortgages

Living off of a fixed income during retirement is a problem for many seniors in America.  Social Security or pension income might not be enough for the lifestyle you’ve been living in the past or won’t be enough to cover medical expenses.  


Many people use savings on hand, stocks, or retirement funds to supplement this.  But there is another asset you own that you can take advantage of: your home!  The equity you’ve been building up in your home is not only another income source for you, but is a safe and protected source hedge against inflation and a volatile stock market.  

Do I qualify for a reverse mortgage?

  • One homeowner must be at least 62 years of age

  • You must have sufficient equity in your home

  • You must show that you will be able to pay taxes, insurance, and maintenance on the home

  • The home is a primary residence

  • You must attend a counseling session explaining the process of a reverse mortgage

  • Property must meet FHA property standards and be FHA-eligible

What does the process look like?

  • Reach out to us to talk about how a reverse mortgage would be right for you

  • We’ll send you a draft of what funds you would qualify for

  • You’ll attend a one-on-one counseling session to have any questions answered

  • We’ll get started on the loan paperwork and collect some documents from you

  • We’ll have an appraisal ordered on the home to determine value

  • You’ll close on your mortgage!

So what happens then?

You can either receive the funds as a monthly payment, a line of credit that you could draw from at any time at your discretion, or a combination.  You’ll pay a fee of 2% of the home’s value upfront at closing and 0.5% every year after, as well as interest on the outstanding balance of the line of credit.  You can choose to either have your taxes and insurance paid for you (these funds would be set aside from the available credit amount) or to pay them yourself.


Here are some commonly asked questions about reverse mortgages.  Don’t hesitate to give us a call if you have a different question or want further details!

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  • What about the interest earned on the reverse mortgage? How is it paid and won’t that mean I owe a lot of money on my home?
    Interest is paid annually out of the available reverse mortgage funds. Generally, the amount your home value will increase (appreciation) offsets the interest accrued.
  • How much could I qualify for?
    The available credit amount is determined by the appraised value of the home, the loan-to-value of any mortgages currently on the home, the age of the homeowner(s), and the current interest rate and margin.
  • Do I have to own my home free and clear?
    No, you can still use a reverse mortgage on your home–you would just use the reverse mortgage to pay off the existing mortgage. This would lower the amount of equity you would directly have access to.
  • What if my home value drops?
    As a part of the mortgage, you will pay an upfront fee at closing and an annual fee to FHA for mortgage insurance. This insurance protects you if the value of the home goes down. HUD (Department of Housing and Urban Development) assumes the risk, so you will never owe more than your home is worth.
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