FHA Reverse Mortgage

A Reverse Mortgage or a FHA Reverse Loan, commonly acquired because of lower fees, works best for homeowners who are retired or are considering retirement and may wish to increase their monthly income. A FHA Reverse loan is great for seniors who live on a fixed income and may be concerned that their retirement savings and Social Security income may not be enough to keep up with the rate of inflation. Catastrophes and other unexpected events create unexpected expenses.

With a FHA Reverse Mortgage you will:

• Receive Tax-Free Income
• Retain Title to Your Home
• Eliminate Mortgage Payments
• Reduce Stress and Anxiety
• Maintain Your Independence
• Ease Financial Burden
• Enhance Your Quality of Life

The income received through a reverse mortgage can be used for a variety of purposes (just like a regular refinance) and you are not restricted in how to use the funds. Examples of potential uses for funds received through a reverse mortgage include:

• Supplement retirement income
• Cover medical expenses
• Make home repairs or improvements
• Pay property taxes
• Pay for in home care or health needs
• Invest in CDs, annuities, long term care insurance
• And more...

Contact a reverse mortgage specialist to see if you qualify

Reverse Mortgage vs. Traditional Mortgages or Home Equity Loans
A reverse mortgage is the opposite of a traditional mortgage. With a traditional mortgage or home equity loan, you borrow a large amount of money and make monthly payments. You must also have a sufficient debt to income ratio to qualify and make monthly mortgage payments.

A reverse mortgage pays you and is available regardless of your current income or debt to income ratio. With a FHA reverse mortgage you receive either regular monthly payments, a lump sum, or "on demand" through a line of credit. Re-payment is only required at the end of the loan, typically when you no longer occupy the home as your principal residence.

Important Facts about Reverse Mortgages
The U.S. Department of Housing and Urban Development, or HUD, established reverse mortgages to help seniors who are homeowners pay for their living expenses and rising medical costs. To qualify for a HUD reverse mortgage you must be at least 62 and either own your home outright or have only a small balance left on your current mortgage.

A reverse mortgage allows qualified homeowners to borrow money against their home's equity. Qualified homeowners can take out a reverse mortgage to get a lump sum of money, receive a monthly income or access money, similar to a line of credit.

Reverse Mortgage Advice
As long as a borrower lives in his or her home, HUD does not require repayment of the money borrowed through a reverse mortgage. If the homeowner sells the home or is deceased, the lender will recover the loan and the interest at the time the home is sold. Any additional value acquired from the sale of the home would be passed onto the surviving legal recipients. If you take out a reverse mortgage, HUD requires you to have mortgage insurance. If proceeds from the sale of the home are less than what the homeowner owes for the reverse mortgage loan, then HUD will pay the remaining balance of the loan, which is covered by the mortgage insurance.

There is no minimum income or amount of assets required to qualify for a reverse mortgage. As long as you own a home and are of qualifying age, you can receive a HUD reverse mortgage. If you owe money on your home mortgage, you must pay off this debt with money from the reverse mortgage. A reverse mortgage must be the first and primary lien on the property. Like a traditional mortgage, there are closing costs and financing fees associated with a reverse mortgage. You may finance these costs into the mortgage loan.

The Department of Housing and Urban Development (HUD) is another good source of information. HUD can provide you with the information necessary to determine if a reverse mortgage is right for you.

Additional Benefits

• Pay-off existing lines on your home
• Supplement Social Security or pension payments to help meet everyday expenses
• Make home improvements or repairs
• Meet unexpected medical expenses
• Provide for in-home health care
• Pay off loans or credit cards
• Purchase long-term care insurance
• Help financially support family members in need

Contact an FHA MORTGAGE SPECIALIST for an REVERSE MORTGAGE TODAY!