HOW IT WORKS
TYPES OF REVERSE MORTGAGES
We have three reverse
mortgage programs to work with. Your
Reverse Mortgage Expert will help determine the best solution for you.
The categories are:
1. FHA Insured Reverse Mortgages, also
known as Home Equity
Conversion Mortgages. (HECM). FHA offers two choices, the FHA
monthly
adjustable and FHA Annual Adjustable.
2. Fannie Mae Home keeper Program.
3. Cash Account® Programs; often described as the jumbo reverse
mortgage program.
4. Your Reverse Mortgage Expert can
help you put together a
combination of all three of the above.
HOW MUCH OF MY EQUITY WILL I RECEIVE?
During your initial
consultation,
your Reverse Mortgage Expert will ask
you for the following information:
- Names(s) of the homeowners
- Dates of their birth(s)
- Zip code where the property is located
- A preliminary estimate of the value of the
property
- A preliminary estimate of the balance due on any
existing mortgages
This information is entered into a computer program that calculates the
amount of equity you will be permitted to access. Once the initial
calculation is made, the program will subtract the loan fees, and amount
of your proceeds needed to pay off any existing mortgages, the remaining
balance is the amount of Reverse Mortgage proceeds available to you.
**The amount of your Reverse Mortgage will also very from
program to program.**
HOW CAN I TAKE MY AVAILABLE FUNDS?
Regardless of how you
draw your funds, there are no limitations on how
you use your proceeds. These proceeds are tax free, not considered
income, and therefore have no affect on your social security or
Medicare benefits.
The best features of this
program is the flexibility on how you draw your
funds. You have four choices:
First Option:
Lump Sum: You may take
the full amount of the available proceeds
in one lump sum.
Second Option:
Tenure Plan: You may
chose to receive monthly tax-free income for
life. This is for the life of the last person living in the home that
was also
a signer on the loan. If your spouse should pass away, the monthly
check in the same amount will continue until the last person on the loan
chooses to sell the home or has passed away.
Third Option:
Credit Line: You many chose to use your proceeds like a line
of credit.
This allows you to draw your funds as your needs dictate. The
amount
you draw is only limited by the available balance, and there are no
restrictions on how you use the funds.
Fourth Option:
A combination of any of the above three.
How you choose to receive
your funds is not a factor in the underwriting
of the loan and you do not need to declare your choice until a few days
before your loan is ready to close.
You can use your home to
stay at home
Questions about costs? 
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