Reverse Mortgage information

We are often contacted by clients inquiring about the benefits, potential draw backs, and mechanics of reverse mortgages.  We have included some information below and would be happy to discuss your unique situation either on the phone or in person.  The reason that this type of funding is called a reverse mortgage is that instead of being approved for a mortgage amount that you then pay down over a period of time, you are instead approved for a mortgage amount and it slowly increases over time.  The reason that your mortgage amount slowly increases is that you do not have to make any mortgage payments and instead your payments are added into the mortgage amount owing.  The really good news is that this program is designed to allow you at access funds, not have to make any mortgage payments, and then if you decide to sell your home at a later date you still receive the remaining equity in your home.

Qualification criteria:

The reverse mortgage funding is very flexible and at the same time it can be limited in terms of approval.  The main criteria that determines if you are able to be approved is your age, there are no income or credit requirements.  The amount of reverse mortgage you qualify for depends largely upon your age and your home value, the higher your age and home value – the higher amount of approval you are able to receive.  The basic criteria is:

*All clients must be over 55 years old, if a husband and wife home a home together they must both be over 55.

*There is no income requirement to qualify

*No credit requirement to qualify

*The maximum loan amount is 50% of your home value and you must be close to 80 years of age to receive this

How your reverse mortgage works:

There are two unique programs that we are able to approve for our clients, the first is a standard reverse mortgage.  This is where you receive a set amount of funds at funding, you are able to use these funds at your discretion for anything.  Past clients have used these funds to repay debt, help their children purchase a new home, give an early inheritance to their grandchildren, set aside funds to live on day to day, build an emergency fund for unexpected health or family challenges.  You would receive these funds up front and not have to make a mortgage payment for them.  The mortgage and payments are paid off when you sell your home.

The second unique program is called the income advantage program.  Typically to qualify for this program our clients must be over 70 years old.  The advantage with this program is that instead of receiving a large lump sum of funds, you are able to receive a steady monthly income from your home.  This program allows you to stay in your home while at the same time receiving monthly payments that you are able to use for your day to day living expenses at your discretion.

Benefits of your reverse mortgage:

In addition to the benefits of receiving either regular income from your home or a larger lump sum amount and not having any mortgage payments accompanying it, there are some other great benefits:

*These funds are not taxable as income so accessing them will not increase your tax bracket and result in a lessening of any seniors benefits that you receive.

*This is a great alternative to selling investments as these funds are not taxable

*Based upon a 3% housing market appreciate per year, most client’s equity remains very similar from their date of funding until they decide to sell in the future

*You are able to repay this type of mortgage at any time and can also choose to pay the interest monthly if you prefer

*To credit or income requirements to qualify

 

We would be happy to discuss your reverse mortgage options and questions with you along with helping you with your entire approval process.  Please feel free to connect with us via phone or from our online contact form or by applying online.