Many senior citizens are looking to the equity in their home to either supplement their income in their golden years or to take care of some other expenses. Here is a list of the most important items to keep in mind when considering a reverse mortgage.

1. Eligible homes - Only owner occupied homes are eligible for a reverse mortgage. It can be a single family home or a multiple unit property from two to four units. Most types of homes, and even some manufactured homes and condos will meet the requirements.
2. Will the bank take the house if you live longer than the loan? As long as one of the borrowers resides in the property, pays the insurance and pays the property taxes then the bank will not take the home.
3. How is a reverse mortgage different from an equity line? An equity line of credit, or even a traditional second mortgage, will require proof of income. The income will need to be sufficient to cover any current debt as well as normal living expenses. However, with a reverse mortgage, there are no income qualifications. In addition, you will not have to make monthly payments to repay the debt. In fact, you will actually receive payments from a reverse mortgage loan.
4. How are the payments received? You can get the payments in several ways. You can get equal payments each month for a certain number of months. You can get equal monthly payments for as long as one of the borrowers is alive. Or you can choose to get disbursements as you need the money.
5. Will I be able to leave anything to my heirs? After the home has been sold and the debt paid off then you are free to use any of the remaining funds as you see fit. The debt does not pass on to your heirs or the estate.

Detailed program information can be found on our Reverse Mortgage page of our website. For additional information or to see if you qualify, contact us below or apply online!