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If you are 62 years or older, have equity in your home, and are looking for a way to enhance your current or future retirement, the answer may be yes.
Additional requirements include that one occupy the property as their primary residence, pay all required property taxes, insurance and any required home owner association dues as well as maintain the property to HUD standards.
All titleholders must be 62 or older and own the home as their primary residence.
The home must meet Federal Housing Authority (FHA) minimum property standards.
You must have sufficient home equity. A BOE Reverse Loan Specialist can tell you if you have enough home equity to qualify.
No. Just like a traditional mortgage, as long as the terms of the loan are met, the borrowers retain full homeownership and can sell the home at any time.
The is determined by the age of the youngest borrower (or eligible Non-Borrowing Spouse), you home's value, FHA lending limits, the amount of equity, and the current interest rate as well as which reverse mortgage product and payment option you choose. A BOE Reverse Loan Specialist can provide you with a quote that is tailored to your specific situation, with no cost or obligation.
You can take your funds as monthly payments for a specified period of time, a lump sum, or a line of credit available for as long as you live in the home. A combination of these options can be arranged.
The HECM (reverse mortgage) is insured by the Federal Housing Administration (FHA) to protect lenders and borrowers alike. This insurance guarantees you will receive your loan proceeds as agreed upon with the lender at the closing of the loan.
In addition to interest, the costs include a title fee, real estate settlement closing costs, credit report fee, a property appraisal fee, origination fee, closing costs, mortgage insurance premium, servicing fee and a modest charge for HECM counseling. While closing costs do vary based on the type and size of the loan, they're the same as those for any traditional mortgage. You can roll most of the up-front costs into the loan, so out-of-pocket expense can be minimized. We will be pleased to give you detailed breakdown of the costs.
Reverse mortgages are non-recourse loans. This means that if somehow your loan balance ends up surpassing the value of your home, the lender cannot collect more than the value of the home at maturity. Under the HECM program, the difference between the loan balance and the home value is covered by the Federal Housing Administration's insurance fund.
No, these benefits will not be impacted. Reverse mortgage loan funds are considered loan proceeds and not income. As an added benefit, the longer you wait to access Social Security benefits, the more you may receive each month. A reverse mortgage can help delay accessing Social Security and may boost your lifetime retirement income. In some cases, Medicaid and other need-based benefits may possibly be affected.