(888)458-4450

What Is A Reverse Mortgage?

A reverse mortgage is a special type of loan that allows you to utilize a portion of the the equity in your home and receive tax-free money, monthly income and/or credit line. The U.S. government guarantees the reverse mortgages.

A reverse mortgage provides financial security because you do not have to make payments or repay the loan as long as you occupy your home as a primary residence.

How Do I Qualify For A Reverse Mortgage?

A reverse mortgage is easy to qualify for, provided that:

1. You are at least 62 years of age or older.
2. Your home is or is to be occupied as your primary residence.
3. You have ample equity in your home.

Unlike a traditional home equity loan, you don't need to prove your future income or your ability to repay the loan because the loan is based on the equity in your home not your income.

What Can I do With The Money?

1. Refinance your existing mortgage
2. Home improvements
3. Medical expenses
4. Long term health care
5. Travel
6. A new car
7. College tuition for grandchildren
8. Purchase of a new home or condominium
9. Anything you want

The possibilities are endless

How Much Money Can I Receive?

The maximum amount of money you can receive is determined by the market value of you home and your age. A representative from Seniors First will assist you in determining the maximum funds available and evaluating your options.

What Is An Eligibility Certificate?

Before obtaining a FHA reverse mortgage, you first meet with an independent counselor. This meeting will help you determine your financial needs and whether a reverse mortgage is right for you. You can set up a telephone conference or a counselor may even come right to you. At the end of the meeting, you will receive an eligibility certificate.

How Do I Get The Money?

With a reverse mortgage, you have six payment options to choose from:

1. Lump Sum Cash:
Draw the maximum amount of cash.
2. Line Of Credit Option:
Draw out cash at the times and in the amounts of your choosing up to the maximum amount. The money not drawn does not accrue interest and increases in value each year.
3. Term Option:
Receive equal monthly payments for a fixed period of time that you select, for example, 5 or 10 years.
4. Tenure Option:
Receive equal monthly payments for life or as long as you occupy your home as your primary residence.
5. Modified Term Option:
Set aside a portion of loan proceeds as a line of credit and receive the remainder in the form of equal monthly payments for the fixed period of time that you have selected.
6. Modified Tenure Option:
Set aside a portion of loan proceeds as a line of credit and receive the remainder in the form of equal monthly payments.

If your financial needs change, you can change payment plans at any time.

How Is Interest Charged On A Reverse Mortgage?

The interest rate on a reverse mortgage adjusts and is tied to readily available market indexes. Interest rate changes do not affect the amount of money you receive, and you are not charged any interest on moneys that have been approved but not yet withdrawn.

What Costs Are Involved With A Reverse Mortgage?

Just like a standard mortgage loan, reverse mortgage costs include appraisal, credit report, title insurance, legal fees, loan origination, and recording fees. At Seniors First, all of these normal loan costs, with the exception of the appraisal and credit report, can be included in your loan balance. A Seniors First representative will provide you with a good-faith estimate of the costs involved.

Why mortgage insurance?

FHA mortgage insurance is for your protection. You can never owe more than the value of your home. Neither you nor your heirs will be responsible for repayment of the mortgage if your home's value is less than the loan balance when you no longer occupy your home. If the loan balance exceeds the value of your home, the mortgage insurance will make up the difference. Guaranteed.

What About My Heirs?

Depending on how much you borrow and how long you live in your home, there may very well be equity preserved for inheritance. After repayment, by sale of the home or refinance, any equity remains with your estate. Your remaining assets are entirely protected.

Why should I select Seniors First for a reverse Mortgage?

Seniors First is a company founded on old-fashioned values and a company whose name clearly states where its priorities lie. Seniors First specializes exclusively in reverse mortgages. Seniors First commitment to seniors, customers service, and affordable housing solutions is what enables us to offer unique products like the reverse mortgage.