If you're a homeowner, age 62 and older it may be time to look at a different type of financing option when it comes to your home. A reverse mortgage is a government insured reverse mortgage also called a "home equity conversion mortgage (HECM)".

A reverse mortgage offers a lot of advantages, take a look below:
Requirements to apply for a reverse mortgage:

• Must be 62 years of age or older.
• The home you wish to do a reverse mortgage on must be your primary residence; meaning the home you live in.
• There are no income or credit score requirements.
• The amount of equity you have in your home determines how much cash you have access to.
• The Department of Housing & Urban Development (HUD) require that all applicants complete a counseling session completed by an independent third party. On average these counseling sessions cost about $125 and may vary depending on your location. Pacific One Lending will secure a list of counselors you can contact so you can take this required counseling. Typically the counseling takes about an hour to complete and can be done in person or over the phone. The home owner or their legal guardian, representative, conservator or personal holding a durable power of attorney acting on the legal behalf of the borrower can complete the counseling.
• An appraisal is required to ensure the market value of your home fits the guidelines outlined by the government. A fee will be charge to cover the appraisers cost. Pacific One Lending does not mark up any appraisal fees; we just want the appraisal cost itself covered. Should you decide not to do a reverse mortgage with Pacific One Lending and the appraisal was not yet done the fee will be refunded back to you. If you decide not to do a reverse mortgage with Pacific One Lending and the appraisal was completed on your primary residence; a refund will not be granted. Again, because this fee covers the cost of the appraisal and Pacific One Lending makes no profit from the appraisal being done.

How a reverse mortgage works:

• If you have an existing mortgage, when your reverse mortgage is approved it will pay off the existing mortgage.
• The equity in your home you can use as cash and it's tax free.
• If your home is already completely paid off, a reverse mortgage can get you access to that equity in form of cash through a variety of option such as a monthly payment, one lump sum, as a line of credit or a combination of the three.
• You don't have monthly mortgage payments and since you are getting cash from your home's equity the amount you owe on your reverse mortgage grows over time. The more cash you access typically the smaller the equity in your home.
• Your home depending on the market may continue to appreciate just like that if you had a traditional loan; hopefully increasing as time accrues.
• You are still responsible for paying your property taxes, insurance and basic home repairs.
• You will never be required to make a mortgage payment as long as you live in the home.
• There are a variety of fixed rate and adjustable reverse mortgage options.
• You can consolidate your debt in this type of mortgage (such as credit cards, personal loans, lines of credit, etc.) which is great because high interest debt can cost you thousands and take decades to pay off on your own.
• You have the right to rescind the loan within 3 business days; the same as any traditional loan product.
• A reverse mortgage only becomes due when the borrower(s) no longer occupies the home. Typically if a borrower passes away, their heirs/estate repay the loan from the sale of the home or if it is refinanced.