What can I use the money for?
Anything you wish! Common uses of loan proceeds are:
• Pay off existing mortgage (required)
• No more mortgage payment!
• Extra monthly income
• Pay off credit cards, debt and or taxes
• Home improvements
• Present or future medical needs
• Travel
• Pay off Credit Cards
• Present or future medical needs
• Travel
• New car
• Help family members with education or to purchase a home
• Purchase a new home
Will we continue to own our home?
Yes, you will own your home just as you do now. You will have an FHA
Reverse Mortgage which requires no payments!
What if I have an existing mortgage?
We can still do a Reverse Mortgage providing there are enough loan proceeds to pay off your existing mortgage.
Can we make payments if we wish?
Yes, you may make payments if you wish, however, payments are not required!
What interest rate am I going to be charged and on what?
You can choose between a low FHA fixed-rate or monthly adjustable rate. Interest and a small (½ %) FHA insurance
fee accrues only on the loan balance.
I’ve always planned to leave the house to the kids. Won’t you be taking my house?
No, your home will always remain your home, you may leave it to whomever you choose. When you pass away, your heirs will have several options for paying off the loan, including selling your home or refinancing the debt. After the debt is repaid, the remaining equity goes to your heirs.
What are my responsibilities as a home owner with a Reverse Mortgage?
Homeowners with a Reverse Mortgage have responsibilities similar to those associated with a conventional mortgage. They are expected to pay property taxes, keep current property insurance and maintain the home.
What if my home is in a ‘living trust’?
Homeowners with living trusts can take advantage of the FHA Reverse Mortgage Plan. A small percentage of trusts need minor amendments.
Does the FHA Reverse Mortgage Plan affect Social Security, Medicare, or pension benefits?
No, these benefits are not affected.
Will my spouse continue to receive the same amount of benefits if I pass away?
Yes, as long as you are joint borrowers, and your spouse continues to live in the home.
Will I have any up front closing costs in getting my loan?
There will be standard mortgage closing costs, and a mortgage insurance premium for the Federally Insured FHA/HUD Home Equity Conversion Mortgage Program. All fees except for the appraisal and a small counseling fee can be financed as part of the loan, meaning minimal out of pocket expenses to you.
Many FHA Reverse Mortgage loans now qualify for 100% Lender paid closing costs and FHA
Upfront Insurance!