That's fine, you just need to live in your primary residence for six months and a day.
It depends on what you do with your overall finances. Some heirs may will receive more by the borrower being more efficient with the use of their entire portfolio of assets.
Note: This is not financial advice. Please consult your financial advisor for your specific situation.
As long as you are simply rehabilitating and getting better, your home and reverse mortgage are still yours until two doctors agree it is impossible for you to ever return to your home.
Your reverse mortgage will become due when one of these things happen:
Yes, your reverse mortgage will not become due until you pass away, sell your home, or are no longer living in the home. If you use all of the available proceeds, you would not have any more money available and interest would accrue until one of the three events referenced above occurred.
Nothing as long as you still live in your home and pay taxes, homeowners insurance, and maintenance.
Most likely, it will decrease the amount of money the heirs will receive from the value of the home. However, your overall net worth will likely get better, because you will not be spending as much from your other accounts.
You remain the owner of your property. There is no change to the deed or title of your home when completing a reverse mortgage.
It depends on your situation. Our trained loan officers have helped hundreds of seniors pick the best option for their personal situation. You can do a lump sum payment, ongoing monthly payment, or you may also choose a line of credit allowing you to access your money as you need it. Your line of credit will be guaranteed to grow every year that you don't use it.
As long as you still have money available to borrow from your reverse mortgage, you can change your disbursement option for a small, one-time fee. Remember when the value of the loan is higher than the home value it does not trigger an early payoff or due date.
No, but for tax or cash flow purposes including Medicaid planning you may wish to do so. What basic responsibilities will you continue to have after you get a reverse mortgage? The homeowner remains responsible for the payment of annual property taxes and homeowner's insurance as well as basic upkeep of the property.
If you do not continue to do these three basic things, the lender is required by HUD to foreclose.
The HECM will be held on the newly purchased home as your primary residence. The down payment you will need to bring to closing is usually between 30-50%.
The down payment you will need to bring to closing will be determined based on your age, interest rates at the time and the sales price (or appraised value, whichever is less) of the home you are buying.
The money must come from your own liquid assets (bank accounts, CD's, retirement accounts, etc.) or from the documented sale of other assets you may have (your present home for example).
Your down payment is higher initially because you will never be required to make a monthly payment (except for taxes, insurance, and maintenance). With a traditional mortgage you will lose much more in cash flow over the years because of the consistent required payments. Remember the HECM for Purchase also can allow you to purchase a more expensive home than what you would otherwise be willing to commit to in payments for the next 20-30 years.
Take advantage of some of these reverse mortgage benefits that increase your purchasing power and flexibility.
One borrower must be 62 years or older
SINCE OPENING OUR DOORS IN 1996, we have not only been dedicated to providing unparalleled customer service but also to our continuous growth. Starting out with a staff of only 16 people, Fairway now employs more than 4,400+ team members including over 1,500 producers and over 300 branches nationwide. Our team has helped thousands of Americans achieve their dream of homeownership throughout the years, funding more than $50 billion in loans since the company started and more than $17.5 billion in 2016.
A reverse mortgage is a loan that converts equity in your home into cash that can be used for many different purposes that will enhance and extend your retirement plan. If you currently have a mortgage, a reverse mortgage could eliminate your current monthly mortgage payment and also allow you to access any additional equity (over and above your mortgage balance) to create accessible cash which is not readily available while in the form of equity in your home. You must still pay property taxes, homeowners insurance, and maintenance.
You have spent many years putting your money into a special account called "home equity" and now with a reverse mortgage, you can convert that equity in to cash - tax-free!* Most reverse mortgages are insured by the Federal Housing Administration (FHA) and are called Home Equity Conversion Mortgages (HECM).
A HECM is the only mortgage that never requires a payment until you pass away or move out of your home. You are required to always pay taxes, insurance, and maintenance on your home, but whether you take a line of credit, monthly checks, or a lump sum, you will never be required to make a mortgage payment during your lifetime as long as you live in your home. However, should you choose a line of credit, you have the option of paying down the line should you wish to have less cash and increase your equity.
When you permanently move out of your home, whether you sell it or pass away, neither your estate or your heirs are responsible to pay the deficit if the balance owed on your reverse mortgage exceeds the home value. However, should your heirs want to keep your home, they may purchase it for 95% of the current appraised value.
