A Reverse Mortgage is a tax-free loan on a portion of the equity in your home that actually pays you. No more monthly mortgage payments — ever. Yes, you can choose to receive a government-guaranteed, tax-free payment every month for the rest of your life. You will never have to make another mortgage payment. And your home can never be foreclosed upon for as long as you and your spouse live in it as your primary residence.* The loan can be either a fixed-rate or a variable rate. It is insured by the U. S. Government for maximum safety. The program was designed by the U.S. government to help seniors enjoy their golden years more fully.
You can choose to receive government-insured monthly payments for as long as you or your qualifying spouse live in the home as your primary residence. (See other Options for Receiving the Money elsewhere in this website.)
- The money can be used for any purpose you choose
- You never make another monthly mortgage payment – ever (You remain responsible for homeowner’s insurance, property taxes and maintenance)
- You are able to live in your home for the rest of your life and the life of your spouse*
- You retain title to your property (As with any mortgage loan, the lender places a lien on your property)
- The income you receive will not affect Medicare benefits or Social Security payments
- You can sell or refinance your home at any time and you keep the equity. (As with any conventional mortgage you must pay off the Reverse Mortgage when you sell or refinance your home.)
- Your property may be passed down to your heirs
- You are fully protected from a real estate market downturn. If your home’s value goes down and the loan balance is higher than your property value when the Reverse Mortgage Loan is repaid, you are responsible to repay only 95% of the appraised value of your home at the time of sale.
- You can even take advantage of skyrocketing market prices. You retain any increase in value. You can pay off or refinance the Reverse Mortgage at any time. You can even roll into a new Reverse Mortgage Loan at the higher property value, if it benefits you.**
- Only minimal income and credit requirements are needed to qualify (no credit scores)
*You will never lose your home to foreclosure as long as you live in your home as your primary residence, maintain your home, keep real property taxes current, keep homeowner’s insurance in force and keep your association dues, if any, current. If you do these things you can live in your home until you and/or your spouse pass away (whichever is later).
**You must wait at least 18 months after the date of the existing Reverse Mortgage to roll over into another Reverse Mortgage Loan. You can refinance your home to a conventional mortgage at any time by paying off the Reverse Mortgage.