Reverse Mortgage Loans
FHA Reverse Mortgages (HECMs) for Seniors
Reverse mortgages have become an important financial resource for senior homeowners due to the broad range of needs these unique loans can satisfy, new programs with improved terms, and easier accessibility. Senior homeowners of all income levels now are looking to reverse mortgages for many different reasons. Simply stated, there are no limits or restrictions on how the money can be used.
If you are 62 years or older, and your home mortgage is paid off or nearly so, a reverse mortgage could be the way to keeping your home while enjoying greater financial security in your retirement years. The reverse mortgage program enables you to withdraw some of the equity in your home with limitations or a single disbursement lump-sum payment at the time of mortgage closing.
Discover how a reverse mortgage can unlock the equity in your home:
- Receive Tax-Free Income
- Keep the Title in your name
- Eliminate Mortgage Payments
- Reduce Stress and Anxiety
- Maintain your Independence
- Ease Financial Burdens
- Live a richer and fuller lifestyle
Unique Terms Developed for Senior Homeowners as follow:
- No monthly payments to lender required
- No minimum income or credit qualifications required
- No give-up of home ownership
- No effect on Social Security or Medicare benefits
- No debt passes to heirs
How the Program Works
There are many factors to consider before deciding whether a reverse mortgag is right for you. Here at Guardian Mortgage, we will sit down with you and evaluate your eligibility requirements that must be met before you can qualify for this program. We will also discuss with you other requirements of the HECM program, the loan approval process, and repayment terms.
General Borrower Requirements for Reverse Mortgage
Individual Requirements:
AGE- All homeowners listed on the deed and title must be 62, or older
OCCUANCY: The property must be the primary residence of each borrower.
EXISTING MORTGAGE LIENS: Any current mortgage, home equity line of credit or other liens secured by the property must be paid at the time of settlement. Thus, the proceeds of the reverse mortgage may be used to pay off these balances.
CONSUMER COUNSELLING: The department of HUD requires that each reverse mortgage borrower receive counseling provided by an independent HUD-approved counseling agency. The counseling is mandatory and is provided free of charge.
DELIQUENCY: All reverse mortgage borrower must not be delinquent on any federal debt
Property Requirements
The following eligible property types must meet all FHA property standards and flood requirements:
- Single Family Residence
- 1-4 Unit Multi-Family Properties with one unit occupied by the borrower
- HUD-approved Condominium project
- Planned Unit Developments (PUD)
- Manufactured home that meets FHA requirements
Financial Requirements
- Income, assets, monthly living expenses, and credit history will be verified.
- Timely payment of real estate taxes, hazard and flood insurance premiums will be verified
- Have financial resources to continue to make timely payment of ongoing property charges such as property taxes, insurance and Homeowner Association fees, etc.
You may be eligible for one of the following payment plans:
Tenure – equal monthly payments as long as at least one borrower lives and continues to occupy the property as a principal residence.
Term – equal monthly payments for a fixed period of months selected.
Line of Credit – unscheduled payments or in installments, at times and in an amount of your choosing until the line of credit is exhausted.
Modified Tenure – combination of line of credit and scheduled monthly payments for as long as you remain in the home.
Modified Term – combination of line of credit plus monthly payments for a fixed period of months selected by the borrower.
Single Disbursement Lump Sum – a single payment at loan closing.
Our Certified Mortgage Planner Specialists will guide you through each stage of the process and provide you with expert advice along the way. We are committed to making the Reverse Home Loan process clear, informative, and simple. At Guardian Mortgage, we understand that Reverse Mortgages work different then refinance and taking cashing your equity in home and you need the through knowledge of the process. That’s why we are committed to providing you with the information you need to make well informed decisions.
