Retirement Reinvented for Senior Homeowners

Reverse Mortgage Loan Highlights

For borrowers 62 and older, a reverse mortgage can be a great option for a refinance or home purchase. The FHA-backed HECM program allows qualified borrowers to withdraw a portion of their equity tax-free without having to make mortgage payments for the remainder of their life or until they leave/sell the home. Borrowers still must maintain home insurance and pay property taxes but can omit monthly mortgage payments from their budget, freeing up much-needed cash flow for fixed-income borrowers.

• Age requirement: To be eligible for a reverse mortgage, the borrower must be at least 62 years old.
• No monthly payments: Reverse mortgages do not require the borrower to make monthly payments.
• Loan disbursement options: Funds can be disbursed as a lump sum, a line of credit, or in monthly payments.
• Homeownership: The borrower retains ownership of their home, and the loan does not have to be repaid until the borrower sells the home or no longer lives in it as their primary residence.

Reverse Mortgage Benefits

• Can be used even if the home is in forbearance.
• Can be used to stop the foreclosure process.
• Frees up monthly cash flow by eliminating mortgage payments.
• Provides tax-free cash out from home equity.

Reverse mortgages are a useful financial tool for senior homeowners who want to tap into the equity in their homes but do not want to sell the property or take on additional monthly payments.