Reverse mortgages are a unique type of loan that requires an experienced MLO to navigate.  I refer all clients to Paul Scheper, owner-broker of Loangevity Mortgage.

Paul is a trusted friend and colleague of many years. Contact Paul with any questions at paulscheper@live.com.

 

No-Payment Reverse Mortgages Second TD 55+
Stated Income – 2nd Trust Deeds Up to CLTV 65%

Taking out a loan on your home in your senior years is scary; here’s the misinformation promulgated :

1) “The Government Will Own My Property”: FALSE

A lien will be attached to a home by a lender listed, just like in any mortgage.

2) “I Will Never Be Able To Sell My Property”: FALSE; 

You can sell your home like you did with any loan, pay off the loan in escrow, and move on.

3) “If I Die, Move Out, Etc., They Will Take The Property”: FALSE

If the property has equity, your heirs can buy the home by paying the loan amount at this time or 95% of the appraised value. The heirs will then be dealing with HUD’s service company.

4) “If the Loan is Higher Than the Home’s Value,
the Lendery Will Come After My Heirs.” FALSE

They cannot come after you or your heirs for any deficiency.

A reverse mortgage is a non-recourse loan.” even if the loan is much larger than the home’s value, HUD can only look to the property for “satisfaction.”

5) “If I Have A Younger Spouse Who Is Not On The Loan,
They Will Be Kicked Out When I Die”: WRONG.

A regulation was passed in 2014 that protects non-borrowing spouses. Now, a surviving spouse stays in the home until they die if they so desire.

6) “You Can Lose Your Home”: FALSE.
A borrower can ONLY lose their home ONLY IF:
a) they move out for more than 12 months,

b) do not maintain the property correctly of do not pay costs such
as property taxes, insurance, homeowner association fees, etc.

7) It Is All So Confusing. Yes, the regulations can be confusing.

However, before applying for a reverse mortgage, you must undergo counseling with a HUD-approved nonpartisan counselor. They will describe all the aspects and answer all your questions.

8) The Mortgage Fees Can Be Higher: TRUE 

The fees can be higher than standard mortgages and HELOCs. This is because reverse mortgages have many borrower-friendly aspects.

No loan payments, stringent qualifications, or any required income level are needed to qualify.

9) I Will Not Have As Much Money To Leave the Hiers. TRUE. 

But you are using your home’s equity, so you will not be a burden
on them while you are alive and will improve the quality of your golden years.