Looking into top tips that you should know about reverse mortgages? Well you’ve come to the right place!
Tip #1…
You have to sell your house to get a Reverse Mortgage.
Answer: How can your sell your house, and then go back and refinance your former house with a Reverse Mortgage? YOU CAN’T! IT’S NOT TRUE! IT’S A FEDERAL CRIME!
*This myth started because of sale leasebacks.
Tip #2
My house can go into foreclosure because of a Reverse Mortgage.
*Can you go into foreclosure if your home is free of ANY mortgages?
Answer: Your house can go into foreclosure, even with NO mortgage….IF YOU DON’T PAY YOUR PROPERTY TAXES!
Tip #3
The Lender Owns My Home. NO!
The homeowner ALWAYS maintains total ownership of
their home, with a reverse mortgage, until they pass! ALWAYS!
Tip #4
The Lender ends up owning my home when I pass away. No, the bank doesn’t get ownership of your home when you pass! Your home is an asset to be included in your trust and you direct who receives your home when you pass.
Tip #5
My heirs will be responsible for any debt associated with a Reverse Mortgage, NO!
Answer: Reverse Mortgages are a non recourse mortgage that does not affect your estate or heirs. (consultant your attorney for legal advice)
Any questions so far about myths and misconceptions?
1)You don’t sell your home.(total ownership)
2) Property taxes (nonpayment causes foreclosure)
3) Bank gets house at your passing. (Your trust dictates )
4) Heirs are liable. (nonrecourse )
Two Types of Reverse Mortgages:
FHA “HECM”
(Condo/Townhouse require FHA approval)
1. 62+ YEARS OLD
2.FIRST T.D. ONLY
3.Monthly payment option
4.Complete refinance of existing mortgage(s)
5.Financeable properties, single family homes, FHA approved condos & townhomes. (some manufactured homes)
6.Non recourse
PROPRIETARY (JUMBO)
(No FHA approval needed for townhomes and condos)
1.60+ YEARS OLD
2.First or 2nd T.D. ONLY
3.Loans to $4 million
4.3 Monthly payment options (DISPURSMENT)
5.No FHA approval needed for townhomes and condos
6.Non recourse
Options to receive any monies available to you:
1. Lump Sum
2. Monthly Payments (term or tenure)
3. Line of Credit
These can be altered at the discretion of the borrower.
Up Front Cost:
•Counseling Session $125-$175
•Appraisal $550-$600*
•Be advised! There is a 25% chance of FHA requiring a 2nd appraisal at home owner’s expense.
Note & Reminders:
1.Property can not be vacated by owner and rented out. Must be owner occupied at all times!
2.HECM programs do not have pre-payment penalties
3.It’s easier to get a Reverse Mortgage when employed
4.Home Equity Conversions (HECM) for purchase are now available
5.I encourage you to have a trusted advisor during the process
When do Benefits Stop? BENEFITS STOP ONLY WHEN THE FINAL BORROWER PASSES
Please feel free to contact me anytime to see if a reverse mortgage is a good fit you you & your family.
