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Reverse Mortgages

What is a Reverse Mortgage?

 

A Reverse Mortgage, or Home Equity Conversion Mortgage (HECM), is a loan that allows borrower(s) age 62 and older to purchase a new home, or access their equity in their existing one, without the burden of monthly mortgage payments

 

Why Would I Get a Reverse Mortgage?

 

The major benefit of a reverse mortgage is the ability to buy a home or access cash without having to make a monthly payment, alleviating borrowers’ financial burden. They are used for many purposes, including:

 

  • Creating additional income or a financial safety net of available funds
  • Financial planning to delay drawing Social Security
  • Downsizing or Upsizing
  • Relocations to be closer to family members or medical facilities
  • Purchasing a second home or rental property
  • Gifting funds to family members
  • Rescuing family members in financial distress

 

How is a Reverse Mortgage Repaid?

 

Instead of making monthly payments as you would in a traditional mortgage, a reverse mortgage is paid in one lump sum at the end of the loan. This typically occurs:

 

  • When the loan term ends
  • When the borrow is deceased
  • If the borrower no longer lives in the property as their primary residence
  • If the borrower does not uphold the terms of the loan (adequately maintaining the property and paying taxes and insurance)

 

Most often, the reverse mortgage is repaid by selling the property and using the proceeds to pay off the loan.

What are the Requirements?

 

To be eligible for a Reverse Mortgage, you must:

 

  • Be age 62 or older
  • Have no liens or judgments against your property
  • Live in the property as your primary residence
  • Meet income and credit requirements (though no credit score is required)
  • If purchasing a home, you must have an adequate down payment

 

Our mortgage experts at TILA would be happy to help you understand your Reverse Mortgage options. Contact us for a free, no-pressure consultation to see how we can help alleviate some of the financial stress in your life, or in the life of your loved one. Call (206) 766- 8888 or email us today.

 

*Reverse mortgages are loans offered to homeowners who are 62 or older who have equity in their homes. The loan programs allow borrowers to defer payment on the loans until they pass away, sell the home, or move out. Homeowners, however, remain responsible for the payment of taxes, insurance, maintenance, and other items. Nonpayment of these items can lead to a default under the loan terms and ultimate loss of the home. FHA insured reverse mortgages have an upfront and ongoing cost; ask your loan officer for details. These materials are not from, nor approved by HUD, FHA, or any governing agency.

  • There is a motto I try to live by especially when I am serving others: "Treat people the way you want to be treated" Donnie and Nazra get the Divine and Amazing Award! Thank you for that good old-fashioned kind of professionalism and dedication that never goes out of style; for the many long hours you put in on my behalf while continuing to fight with such sincerity and heart — to bring this process to a successful end. I truly appreciate it. You are an awesome team! God bless you!

    - Albetta D.

  • We truly appreciate Donnie Little and his team at TILA Mortgage for helping us through a reverse mortgage and a conventional loan for a rental property. They have shown us personal integrity, great passion for what they do, exceptional professionalism and outstanding expertise in their field. We would not be able to have made it through the complex maze of applying for our reverse mortgage if it wasn't for Donnie's help. His team has also bent over backward to help us complete our mortgage loan for closing in a very short time. We would recommend TILA to everyone!

    - John N.

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