Reverse Mortgage: Empowering Your Retirement

Loan Program Summary & Highlights

A Reverse Mortgage is a unique loan program designed specifically for homeowners aged 62 and older, allowing them to convert their home equity into cash while continuing to live in their home. Unlike traditional loans, payments are deferred, providing financial flexibility during retirement. Whether you need to supplement your income, cover medical expenses, or simply enjoy your retirement, a Reverse Mortgage can offer the financial freedom you deserve.

• No monthly mortgage payments: Payments are deferred as long as the homeowner occupies the property.
• Access to home equity: Turn your home’s value into tax-free funds.
• Flexible disbursement options: Choose a lump sum, monthly payments, or a line of credit.
• Remain in your home: Maintain ownership and residency as long as program requirements are met.
• Federally insured: Most Reverse Mortgages are backed by the Federal Housing Administration (FHA).

What is a Reverse Mortgage?

A Reverse Mortgage, also known as a Home Equity Conversion Mortgage (HECM), is a financial tool that allows eligible homeowners to tap into their home equity without selling their home or taking on monthly repayment obligations. Instead of making payments to the lender, the lender pays the homeowner.

These loans are designed for older homeowners looking to improve their quality of life during retirement. The funds can be used for any purpose, from medical expenses to home renovations, offering flexibility and financial peace of mind. The loan is repaid when the homeowner sells the home, moves out, or passes away.

General Reverse Mortgage Guidelines

• Age requirement: Homeowners must be at least 62 years old.
• Primary residence: The property must be the borrower’s primary home.
• Equity requirement: Sufficient home equity is required to qualify.
• Property types: Eligible for single-family homes, FHA-approved condos, and multi-family homes (up to 4 units).
• Financial assessment: Borrowers must demonstrate the ability to pay property taxes, homeowners insurance, and maintenance costs.

Pros of Reverse Mortgage

• No monthly payments: Relieve financial stress by eliminating monthly mortgage obligations.
• Tax-free funds: Access your home equity without incurring tax liability.
• Flexible disbursement options: Receive funds in a way that best suits your needs.
• Stay in your home: Continue living in your home while benefiting from its equity.
• Federally insured: Most programs are backed by the FHA for added security.

Cons of Reverse Mortgage

• Loan balance grows: Interest accrues over time, increasing the amount owed.
• Home equity reduces: Future inheritance for heirs may be affected.
• Costs and fees: Reverse Mortgages may include higher upfront costs and fees compared to traditional loans.
• Program requirements: Borrowers must continue to pay property taxes, homeowners insurance, and maintenance costs.
• Not ideal for short-term needs: Best suited for long-term financial planning.

Best Candidates for Reverse Mortgage

• Retirees: Ideal for older homeowners seeking to supplement their retirement income.
• Homeowners with significant equity: Best suited for those with paid-off or mostly paid-off mortgages.
• Borrowers planning to age in place: Perfect for those who intend to remain in their home long-term.
• Those needing financial flexibility: Helps cover expenses like healthcare, home repairs, or daily living costs.
• Individuals with no plans to move: Not recommended for those planning to relocate in the near future.

At One Mortgage Company, we understand the importance of financial security during retirement. Our Reverse Mortgage specialists are here to help you explore your options and determine if this program is the right fit for your needs. Contact us today to learn more about how a Reverse Mortgage can enhance your retirement lifestyle.