How Reverse Mortgages Work

Do you meet the requirements?
Reverse Mortgages
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 up front and ongoing cost; ask your loan officer for details. These materials are not from, nor approved by HUD, FHA, or any governing agency.

Borrower Requirements

In order to qualify, you must:

  • Be 62 years of age or older
  • Own the property outright, have equity or wish to purchase a home
  • Occupy the property as your principal residence
  • Receive counseling from a HUD- approved reverse mortgage counselor

Property Requirements

The following eligible property types must also meet all FHA property standards and flood requirements:

  • Single family home or 2-4 unit home with one unit occupied by the borrower
  • HUD-approved condominium project
  • Manufactured home that meets FHA requirements

Features & Benefits

The amount of money you can receive is based on the age of the youngest borrower, prevailing interest rates and the lesser of the appraised value of the home, sale price or maximum lending limit. No monthly mortgage payments are required.However, the borrower must continue to pay taxes and insurance and maintain the home according to FHA guidelines. Interest and fees are added to the principal balance each month, resulting in a rising loan balance over time.Borrowers may remain in the home indefinitely, even if the loan balance becomes greater than the value of the home – so long as the borrower meets the loan obligations. Because Reverse Mortgages are non-recourse loans, you or your heirs will never owe more than the lesser of the value of the home or the loan balance, provided the home is sold to repay the loan. Borrowers pay a mortgage insurance premium (MIP) which protects the borrower by ensuring they continue to receive their payments in the event the lender becomes insolvent.

Reverse Mortgages
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 up front and ongoing cost; ask your loan officer for details. These materials are not from, nor approved by HUD, FHA, or any governing agency.

Testimonials

The Reverse Mortgage is not only nice, IT’S ESSENTIAL! With expenses going up we were able to add what we would have spent on our house payment to our monthly budget.

Mrs. Hughes

Nampa, ID

Working with Kyle Buck made the difference in getting our loan done!

Ed

Emmett, ID

I have lived in my home for 15 years and was going to lose it to foreclosure. Working with Kyle saved my home and now I can live here as long as I want without the financial stress of making another house payment.

Jerry

Montana

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