Frequently Asked Questions
Are there any income or credit requirements? Absolutely not! Your credit history and income are not factors in qualifying for a Reverse Mortgage.
Do I have to pay taxes on this money? No! The money from the Reverse Mortgage is considered loan proceeds and therefore is not considered income.
Can I ever owe more on the property than it's worth? It's possible, but you or your children will not be held responsible. the Reverse Mortgage is insured by the Federal Housing Administration. This means the loan is non-recourse, so in the event you owe more than the house is worth, the F.H.A. picks up the tab.
Do my spouse and I both have to be 62? No. But this may add some risk. So please be sure to inform your loan officer if your spouse is under 62.
Did you Know?
...you can receive your proceeds from the Reverse Mortgage 3 different ways?
1. Lump Sum
All of the money is given to you at closing. Most people who request a lump sum have serious plans for all that cash!
2. Line of Credit
You may decide not to use all of your money right away. You may have a need for some of the money, but not all. the money not used will be placed in a line of credit and will be available for future use. Best of all, the money in the line of credit does not accumulate interest until you decide to use it.
3. Monthly Payments
Those who elect this plan will receive a monthly check for the rest their lives as long as the home remains their primary residence and meet the reverse mortgage requirements. The lender will send a specified amount for you each month.
OR, you may have the choice of combining any of the 3 options listed above.
Isn't this program GREAT?!?
Have questions?
