What Is a Home Equity Reverse Mortgage?
Reverse mortgages are gaining more and more popularity as a means for homeowners to access an important asset in retirement: their home’s equity. A home equity reverse mortgage allows homeowners to convert some of the equity in their home into income-tax-free funds. A reverse mortgage can be used to pay off your current mortgage, purchase a home without a mortgage payment at a price above your available cash on hand, pay unexpected expenses, have a rainy-day fund, or create a monthly paycheck to supplement your income.
Unlike a traditional home equity loan or home equity line of credit, there are no monthly principal and interest payments to make. The reverse mortgage doesn’t have to be repaid until the last surviving borrower (or an eligible non-borrowing spouse), no longer lives in the home, or the home is sold. As with any home mortgage, in order for the loan to remain in good standing, the borrower must keep up with property-related taxes, insurance and upkeep.
Who is eligible for a reverse mortgage?
Your Reverse Mortgage Loan Officer and advisor, Lincoln Chris, will help you determine if you are eligible for a home equity reverse mortgage. Generally, you’ll need to meet the following criteria:
- Be at least 62 years old
- Live in the home as your primary residence
- Have sufficient equity in your home
- Not be delinquent on any Federal debt
Your home can be a single-family home, a two-to-four-unit home (with one unit occupied by you), or an FHA approved condo. It must also meet FHA property standards and flood requirements.
Types of reverse mortgages
There are two basic types of reverse mortgages, Home Equity Conversion Mortgage (HECM) loans and Jumbo Reverse Mortgage loans.
Home Equity Conversion Mortgage (HECM) loans are insured by the U.S. Federal Government, and are only available through an FHA approved lender. *
* This ad is not from HUD or FHA and was not approved by HUD or any government agency.
* Este anuncio no es de HUD o FHA y no fue aprobado, revisado o avalado por HUD ni por ninguna agencia gubernamental.
Jumbo Reverse Mortgages – Similar to a jumbo home loan, clients who are 62 years old or older and who own a property that is valued at $1 million or more may be eligible for a Jumbo Reverse Mortgage loan.
Your Reverse Mortgage Loan Officer and advisor, Lincoln Chris, can help you with either type of Home Equity Reverse Mortgage.
Do you have questions about a home equity reverse mortgage and whether one is right for you? Get the information you need by calling Lincoln Chris – Reverse Mortgage Loan Officer, for a complimentary consultation.
Call (415) 547-0116
Lincoln Chris, a local Bay Area resident, is available to take your call days, evenings, and weekends