Reverse Mortgages 101
An FHA insured reverse mortgage, also known as a Home Equity Conversion Mortgage (HECM) is possibly the most flexible retirement tool in your retirement toolbox.
Access your equity
As homeowners 62 years or older, you can use the equity you have built in your home to make your retirement richer.
If you choose a Reverse Mortgage, there are no restrictions on how you use the loan proceeds and the disbursements you receive are tax-free* since you are drawing money from a loan. For your specific situation please contact your tax advisor. By the way, you can even purchase a home with a Reverse Mortgage.
*Consult your tax advisor.
Just a Few of the Benefits from a Reverse Mortgage
Increased monthly cash flow
Establish a line-of-credit for unforeseen future emergencies
Pre-inheritance gifts
Tackle that bucket list
Travel
Grandkids tuition
Some Facts:
Borrower(s) must be at least 62 years of age. Non-borrowing spouses may be younger.
Borrower(s) must live in the property as their primary residence.
1 to 4 unit properties, PUDs, manufactured homes and FHA approved condos.
Loan amount based on youngest borrower’s age, expected interest rate and home value / FHA limit.
Borrower(s) must continue to pay *property taxes, *homeowners insurance and applicable HOA dues.
All borrowers and non-borrowing spouses must receive counseling from a HUD approved counselor.
* A Life Expectancy Set Aside (LESA) could help with this. Ask your Reverse Mortgage Specialist about this.