- HUD began insuring HECM Reverse Mortgages in 1989 as a way seniors access cash that would enable them to stay in their homes longer.
- For Senior Homeowners 62 years and older
- Proceeds are Tax Free and may be used any way you choose
- No mortgage payments until you move from the home. You are obligated to pay your real estate taxes, homeowner’s insurance and maintain your home in good condition.
- Your available cash is based on your age, home value, property lien amounts if any, and current interest rates
- Lowest Fixed Rates!
- You or your heirs receive 100% of the home proceeds above the loan payoff.
- HECM Reverse Mortgages are “Non Recourse Loans” This means that when it comes time to repay the loan you are not liable for any amount that of the loan that exceeds your home’s value.
HECM Reverse Mortgages
Reverse Mortgages are becoming popular in America. Many seniors use it to supplement social security, meet unexpected medical expenses, make home improvements, and more. Since your home is probably your largest single investment, its smart to know more about reverse mortgages, and decide if one is right for you.
What is a reverse mortgage?
A reverse mortgage is a unique loan that enables senior homeowners (62+) to convert part of the equity in their homes into tax free income without having to sell the home, give up the title, or take on a new monthly mortgage payment.
Can I qualify for a reverse mortgage?
To be eligible for a reverse mortgage, the borrower must be a homeowner, 62 years old or older; own your home outright, or have a low mortgage balance that can be paid off at the closing with proceeds from the reverse loan; and must live in the home. There are also minimum credit and income requirements.
What types of homes are eligible?
Your home must be a single family dwelling or a two-to-four unit property that you won and occupy. Townhouses, detached homes, units in condominiums and some manufactured homes are eligible. The home must be in reasonable condition, and must meet the minimum property standards. In some cases, home repairs can be made after the closing of a reverse mortgage.
What’s the difference between a reverse mortgage and a bank home equity loan?
With a traditional second mortgage, or a home equity line of credit, you must have sufficient income and a satisfactory credit history to qualify for the loan, and you are required to make monthly mortgage payments.
Can the lender take my home away if I outlive the loan?
No! Nor is the loan due. You do not need to repay the loan as long as you or one of the borrowers continues to live in the house as your primary residence and keeps the taxes and insurance current. You can never owe more than your homes value.
Will I still have an estate that I can leave to my heirs?
When you sell your home or no longer use it for your primary residence, you or your estate will repay the cash you received from the reverse mortgage, plus interest and other fees, to the lender. The remaining equity in your home, if any, belongs to you or to your heirs. None of your other assets will be affected by the reverse mortgage loan. This debt will never be passed along to the estate or heirs.
How much money can I get from my home?
The amount you can borrow depends on your age, the current interest rate, other loan fees and the appraised value of your home or the mortgage limits for your area, whichever is less. Generally, the more valuable your home is, the older you are, the lower the interest, the more you can borrow. Professional Mortgage Corp. can calculate your exact amount over the phone. Just call (804) 358-7929 and give us your age(s), approximate home value, county or city located, and approximate mortgage(s) balance.
How do I receive my payments?
You have five options:
- Tenure Equal monthly payments as long as at least one borrower lives and continues to occupy the property as a principle residence.
- Term Equal monthly payments for a fixed period or months selected.
- Line of Credit unscheduled payments or in installments, at times and in amounts of borrowers choosing until the line of credit is exhausted.
- Modified Tenure combination of line of credit and monthly payments for as long as the borrower remains in the home.
- Modified Term combination of line of credit with monthly payments for a fixed periord of months selected by the borrower.
What is the process like and how long will it take to get my money?
After your initial questions are answered and before you apply for a loan, you must obtain counseling from an approved agency. We can provide you a list of agencies in your area. After receiving your counseling certificate you may apply for the loan. Credit history and income are considered to determine if an escrow for future taxes and insurance will need to be escrowed. We will obtain a home appraisal. Once the appraisal is completed we would have the settlement agent order a title search and assist with the loan closing. Depending on the time it takes to get your counseling certificate the process should take 45 to 60 days.