Reverse Mortgage

 

 

Marianne Martin – Reverse Mortgage Broker

Ask me about our Manufactured Home Reverse Mortgages on Double or Single Wide homes. Contact me – 541-593-2021 or mmartin@klondikemortgage.com

BORROWER ELIGIBILITY
• 62 years or older (at least one borrower)
• Available on Primary Residence only
• Maintain annual property taxes and insurance

PROPERTY ELIGIBILITY
• Single Family
• Multi Family up to 4 units
• Manufactured
• Condos (FHA approved)

QUALIFYING
• Income (residual income calculation)
• Credit History is considered
• FHA appraisal

WHAT IS A REVERSE MORTGAGE?
Reverse Mortgages were created for those who want a secure way to supplement their retirement income. They enable homeowners age 62 and over to borrow against the equity in their homes without having to sell the home, give up title to it or assume a new monthly mortgage payment.

WHO IS ELIGIBLE FOR A REVERSE MORTGAGE?
Initial qualifications are your age and the value of your home. You and/or your spouse must be at least 62 years of age. The more senior
you are, typically the more beneficial the program. Your home must also comply with FHA appraisal guidelines.

WHAT KIND OF HOMES ARE ELIGIBLE FOR A REVERSE MORTGAGE?
The property must be a single family home, multi-unit property such as a duplex or four-plex, townhome, manufactured home or condo.

DOES THE BANK OWN MY HOME?
No, you retain full ownership of your home.

IS THE INCOME FROM A REVERSE MORTGAGE TAX-FREE?
Yes, the since the proceeds are a loan, they aren’t considered income to the borrower.

WHAT IF I ALREADY HAVE A MORTGAGE?

One of the most common uses for a reverse mortgage is to replace current mortgages on the property.

IS INTEREST CHARGED ON A REVERSE MORTGAGE?
Yes. Interest accrues on only the portion of the funds that you have drawn on the loan. Money left in a line of credit does not accrue
interest until drawn.

HOW LONG DOES THE PROCESS TAKE TO GET A REVERSE MORTGAGE?
The average time to close a reverse mortgage is 45-60 days.

HOW CAN I RECEIVE FUNDS FROM A REVERSE MORTGAGE?
You can choose to receive the money in a one-time lump sum payment or as a series of monthly payments. There is also the option of the line of credit that allows you to take funds only when you need them.

CAN I HAVE MY HOME INCOME IN A TRUST?
Yes. The trust documents will need to be reviewed by the lender as well as the title company as part of the approval process

WHAT HAPPENS WHEN I NO LONGER LIVE IN THE HOME?
The loan simply needs to be repaid the same as any loan. The most common scenario is for the family or heirs to sell the home. The
proceeds of the sale will be used to pay off the reverse mortgage and the remaining equity goes to the family or estate.

Types of Reverse Mortgage Loans

Fixed Rate HECM
For borrowers who desire the security of a fixed rate mortgage. The Fixed Rate HECM allows borrowers to lock-in the entire amount of the disbursement in a fixed rate. Fixed Rate HECMs are generally less flexible than adjustable rate HECMS and often carry higher interest rates.

Adjustable Rate HECM
Rich features such as credit line growth, post-closing disbursement changes, tenure/term payment options, make the adjustable rate HECM the most popular HECM product historically. These loans have interest rates that are tied to the LIBOR Index and adjust on a monthly basis. Typically borrowers retain more of their equity over time with a well planned draw schedule and conservative use of funds.

Jumbo Reverse Mortgage
Due to current market conditions, we are not currently offering Jumbo Reverse Mortgages. These loans are typically sought by borrowers with homes valued above the FHA lending limit. The only alternative today would be the FHA insured HECM.

Reverse Mortgages can be great mechanisms for liquidating equity in owner-occupied properties for various needs. Home owners age 62 and up are required to obtain counseling from an FHA approved, independent agency to ensure understanding of the program features, alternatives, and implications of this great US Government insured loan product.

Call Us Today 541-593-2021.