A Reverse Mortgage is a loan for senior homeowners that allows borrowers to access a portion of the home’s equity and uses the home as collateral. The loan generally does not have to be repaid until the last borrower no longer occupies the home as their primary residence.

FAQ:

How do you pay back a reverse mortgage?

The most common method of repayment is by selling the home, where proceeds from the sale are then used to repay the reverse mortgage loan in full. Either you or your heirs would typically take responsibility for the transaction and receive any remaining equity in the home after the reverse mortgage loan is repaid.

Who qualifies for a reverse mortgage?

Reverse Mortgage Eligibility. The basic requirements to qualify for a reverse mortgage loan include: the youngest borrower on title must be at least 62 years old, live in the home as their primary residence and have sufficient home equity. Borrowers must also meet financial eligibility criteria as established by HUD.

Can you make monthly payments on a reverse mortgage?

You can make a prepayment to your reverse mortgage at any time for any amount you choose. There are no prepayment penalties if you choose to do so. … So let’s say that you get a reverse mortgage of $100,000, and you decide to make the interest payment to the loan every month so the balance does not increase.

Reverse Mortgage Rules

You must be 62 years of age or older.
You must own your home.
You must own your home outright, or have a substantial amount of equity.
You must live in the home as their primary residence.
You must complete a financial assessment.

https://www.reversemortgage.org/

NRMLA has established the Certified Reverse Mortgage Professional designation, a continuing education and testing program that gives experienced professionals an opportunity to further prove their dedication and knowledge. Look for the CRMP logo on your loan originator’s business card and promotional materials.

And look for the NRMLA logo on your loan originator’s business card or website.

You can borrow with confidence from a NRMLA lender.

Please contact our Reverse Mortgage Specialist Nancy Foster to find out if you could benefit from this unique mortgage product.

Nancy Foster – 805-440-1425 – nancy@pactm.com – NMLS #266111