Call us: (407)-453-1641   |   Toll Free: 1-866-738-3773

1. What is a reverse mortgage?
A reverse mortgage is a special type of home loan that allows a homeowner  age 62 and over to convert a portion of  the equity in their home into tax-free cash. The equity built up over years of home appreciation and mortgage payments can be paid to you. Currently, over 95% of all reverse mortgages are HUD insured HECM (home equity conversion mortgage) loans.

2. How is a reverse mortgage different from a home equity loan or a forward mortgage?
When you get a forward mortgage or a home equity loan on your home, you have to make monthly payments while with a reverse mortgage no repayment is required  as long as you use the home as your principal residence.   

3.  How can I qualify for a HUD loan?
To be eligible for a HUD reverse mortgage, HUD’s Federal Housing Administration  (FHA) requires that the borrower is a homeowner, 62 years of age or older, own their home outright or have a low mortgage  balance that can be paid off at the closing with proceeds from the reverse mortgage loan; and must live in the home.  

4. Is there any income or credit requirement?
Unlike with a traditional mortgage or home equity loan, there is no income or credit requirement to qualify for a reverse mortgage.

5.  Do I have to pay income tax on the proceeds?
Proceeds received from a reverse mortgage are loan advances and not taxable income. For your specific situation, we recommend that you consult with a tax advisor.

6. Will a reverse mortgage affect my Social Security or Medicaid benefits?
No. Money from a reverse mortgage is not considered income, nor does it affect Social Security or Medicare. Homeowners on Medicaid should observe pertinent rules.

7. Can the reverse mortgage lender take my home if I outlive my loan?
No, they can’t! In fact, the loan is not even due then as long as you and another borrower continues to live in the house as the primary residence and keep property taxes paid and  home insurance in force.  

8. What types of homes are eligible?
Your home must your primary residence where you live most of the year. It must be a single family dwelling or a two-to-four unit property townhomes and detached homes.  Townhomes, detached homes, units on condominiums and some manufactured homes are eligible. Condominiums and manufactured homes must be built after June 1976.  

9. How much money can I get from my home?
The amount you can borrow depends on your age, the current interest rate, appraised value of your home and  outstanding balance of any liens against the property (first, second mortgages, home equity loan, etc.)

10. How can I receive my money?
You have 5 options:
Lump sum
Line of credit
Term payments (monthly payments for a specific amount of time)
Tenure payments (monthly payments as long as you live in the home)
Any combination of the lump some, line of credit and monthly payments

11. Will I still have an estate that I can leave to my heirs?
When you sell your home or no longer use it as your primary residence, you or your estate must repay the lender the cash you received from the reverse mortgage, plus interest and other fees. Any remaining equity belongs to you or your heirs. It is important to remember that you will never owe more than the home’s appraised value when it’s sold. None of your other assets will be affected by your reverse mortgage loan.

12. Would a home that is in a “living trust” be eligible for a reverse mortgage?
Yes. In most cases a borrower who put his or her home in a revocable trust can still have a reverse mortgage. For your specific situation, please speak to our advisors.

WE DO BUSINESS WITH PASSION AND COMPASSION!  WE CARE!