Please Contact Larry to receive reverse mortgage information. Feel free to inquire with HUD, or the Illinois Department of Financial and Professional Regulation for more information on reverse mortgages. You may also contact “NRMLA” for more information.
Yes, with the HECM (Home Equity Conversion Mortgage) for Purchase loan, qualified borrowers can use their loan proceeds to buy a home that better suits their needs and lifestyle. It’s a home financing option that can make it easier for buyers age 62 and older to afford the home they want, while preserving more of ... Read more
To be eligible for a reverse mortgage, you’ll need to meet the requirements set by the federal government: All borrowers must be age 62 or older (this applies to all co-owners listed on the home’s title). The home must be your principal residence. And it must meet standards set by the United States Department of ... Read more
The other borrower continues to own and live in the home — and enjoy all the benefits of their reverse mortgage.
The loan must be paid in full when one of the following occurs: A “maturity event” — the loan becomes due and payable when the home is sold, or the borrower or qualified non-borrowing spouse no longer occupies the home as their principal residence (i.e., passes away, moves out, or vacates the property for more ... Read more
Yes. For many homeowners age 62 and older who are looking to refinance their mortgage(s) or consolidate debt to reduce their monthly bills, a reverse mortgage can be a more suitable solution. That’s because a reverse mortgage has a flexible repayment feature, which puts you in control of how much you pay towards principal and ... Read more
Typically, reverse mortgage loan funds are not subject to income tax. Contact your tax advisor for additional details.
The specific amount depends on several factors, including: Your age The type of reverse mortgage you select Current interest rates Appraised value of your home Federal Housing Administration (FHA) lending limits HUD also regulates the amount of money that can be withdrawn during the first year of your reverse mortgage. This is to help preserve ... Read more
With the exception of a fee for government-required reverse mortgage counseling, most of the fees associated with a reverse mortgage can be financed with your loan, so there’s no immediate out-of-pocket cost. The costs are added to the loan amount (“principal”) and paid along with the accrued interest when the loan becomes due. Depending on ... Read more
A reverse mortgage offers certain advantages: With a traditional home equity loan or home equity line of credit, you must make monthly principal and interest payments on the balance while you live in the home — whereas a reverse mortgage has a flexible repayment feature. You can pay as much or as little as you ... Read more
You have a number of choices for how you receive your funds: Lump sum Monthly advances (either for a fixed length of time, or as long as you live in the home) Line of credit (take funds when you need them) — this has become the most popular option Or a combination of the above
A reverse mortgage is a home-secured loan that’s exclusively for homeowners and homebuyers age 62 and older. It allows borrowers to convert some of the equity in their home into income-tax-free funds. (Not tax advice, consult a tax professional.) There are different loan products to choose from that offer you options on what interest rate ... Read more
Reverse mortgages are available with either fixed or variable rates. Borrowers who elect a fixed-rate loan will receive their funds as a single disbursement lump sum. A lump sum disbursement is also available with an adjustable rate. A line of credit and monthly advances have an adjustable rate.
The funds from a reverse mortgage generally do not affect regular Social Security or Medicare benefits. However, needs-based benefits, such as Medicaid and Supplemental Security Income (SSI), may be impacted. I can provide additional general information, but you should contact a financial professional or government benefits specialist about your particular situation.
Use the proceeds for the things you need and want. For example: refinancing your existing mortgage(s) to improve cash flow; consolidating debts to reduce monthly bill payments; buying a home; making home renovations; funding home health care; and more.
You’ll repay the loan balance, any fees that have been added, and the accrued interest. Homeowners (or their heirs) usually choose to do this through the sale of the home or other assets. Repaying the loan by refinancing through a conventional mortgage is also an option.
A HECM is a reverse mortgage loan that’s insured by the Federal Housing Administration (FHA).
Yes. A reverse mortgage can be refinanced into a new reverse mortgage (typically another Home Equity Conversion Mortgage, or HECM, insured by the FHA). This is called a HECM-to-HECM refinance. Private (proprietary) reverse mortgages can also be refinanced, either into another proprietary loan or into a HECM, depending on eligibility and lender offerings. Why would ... Read more