Reverse Mortgages can be a great way for qualified homeowners who are 62 years of age and older to access the equity in their homes. A Reverse Mortgage can provide you with a source of funds to supplement your monthly income, cover healthcare costs, pay off existing mortgages or other financial obligations, fix up your home, or simply gain peace of mind. Whatever your specific goals, a Reverse Mortgage can go a long way towards helping you maintain your financial independence.

What is a Reverse Mortgage?

A reverse mortgage is a loan against your home that you do not have to pay back for as long as you live in the home. It can help turn the appraised market value of your home into cash without having to make monthly mortgage payment; and can help you manage your financial future. Rather than making a monthly mortgage payment, you actually receive funds from the lender based on the loan terms that you select. Perhaps best of all, a reverse mortgage allows you to still own your home throughout the entire term of the loan.

Benefits of a Reverse Mortgage:

• No Monthly mortgage payments
• No income qualifications
• Loan proceeds may be tax-free, consult a tax advisor for more information
• The loan is not due until the last homeowner leaves the home
• Neither you nor your heirs will owe more than your home's appraised value at the maturity of the loan
• You decide how you would like to receive the loan proceeds - lump sum, line of credit, monthly payments, or a combination of any of these

Achieve Your Goals

With a reverse mortgage, you have the freedom and flexibility to use the money from your home in any manner you see fit. Experience indicates that people use the funds for a variety of reasons including:

• Healthcare and prescription drug cost
• Home remodeling or repair
• Supplemental income for everyday living expenses
• Assisting grandchildren with education expenses
• Estate and Financial planning
• Long- term care insurance

Explore whether a reverse mortgage program would fit your needs

Assistance is available to explain your various reverse mortgage options and to help you determine if a reverse mortgage best addresses your financial needs. If you decide a reverse mortgage is the right solution for you, the next step is determining which reverse mortgage loan program works best for your particular situation. 

Qualifying can be easy

Although the qualification process may vary by lender, there are typically no income or heath qualification and only minimal credit score requirements needed to qualify for a reverse mortgage.

Thee amount of the reverse mortgage loan for which you qualify is determined by several factors, including:

• Homeowner age- all homeowners must be at least age 62
• Current appraised value of the home
• Current interest rate

Easy steps to getting a Reverse Mortgage

The steps outlined below are intended to help you understand each stage of the loan process.

1. Get Educated
   Regardless of the reverse mortgage program you choose, counseling by a Department of Housing and Urban Development (HUD) - approved counselor or a American Association of Retired Persons (AARP) - approved counselor is required. The counselor is there to help make sure you are fully aware of your options and that you understand the reverse mortgage program and the loan process itself. With your consent, a representative of your lender may arrange arrange for a HUD- approved counselor to contact you, or they may provide you a list of approved counseling agencies in your area. In addition to counseling, you are encouraged to also seek advice from your family, legal, and financial advisors.
2. Appraisal
   Upon completion and submission of your application, the lender will schedule an appraisal to determine the current market value of your home and whether or not any repairs will be needed in order to meet loan underwriting guidelines.
3. Underwriting
   Underwriting will then review the loan file and appraisal in accordance with the applicable FHA or lender loan policy. Upon completion, a representative of your lender will notify you of the lender's decision and inform you of any conditions that must be met prior to loan closing.
4. Loan Closing
   If approved, you will then decide how you want to receive your cash from the loan proceeds. The final step will be signing the documents at loan closing. Disbursement of payment from your reverse mortgage loan may begin within just days after closing.