Reverse Mortgage

A Reverse Mortgage is a special type of home loan approved by the Federal Housing Administration (FHA) that lets homeowners, pages 62 and up, convert a portion of the equity in their home into cash. The equity that you built up over the years of making mortgage payments can be paid to you. Unlike a traditional home loan or equity loan, Reverse mortgage borrowers do not have to repay the loan until they sell the home, die, or no longer maintain the home as the primary residence. You can also use the equity on the loan to purchase a primary residence, pay medical bills, property taxes, home insurance or any other living expenses.

Benefits of Reverse Mortgage:                                                                                                                       + Tax-free proceeds can be used to pay off various expenses
+ No monthly mortgage payments
+ No early prepayment penalty                                                                                                                           + Generally has no effect on Social Security and other regular benefits          
+ Can choose fixed interest or adjustable interest rate                                                                                       + Stay in and retain the title and ownership of your home                                                                               + Helps you plan for retirement and maintain financial security

Eligibility for the FHA Reverse Mortgage:
- Your home must be a single family home or a 2-4 unit home with one unit occupied by the borrower.               HUD-approved condominiums and manufactured homes that meet FHA requirements are also eligible.
- 62+ years old.
- Not be delinquent on any federal debts.                                                                                                           - During the loan period, the borrower must be able to pay off ongoing property expenses, such as taxes and   insurance, and abide by the terms of the loan.                                                                                                 - Participate in a consumer information session give by a HUD-approved HECM counselor.

Financial Requirements:
- A financial assessment must be performed by the lender. Income, assets, monthly living expenses, and         credit history must be verified. 
- Timely payments of real estate taxes, hazard and flood insurance premiums must also be verified.

Once approved, you may choose from among different payment plans to get the fund:                Term - Equal monthly payments for a fixed period of months.                                                                    - Tenure - Equal monthly payments as long as the borrower occupies the home as a primary residence.
- Line of Credit - Unscheduled payments or in installments, at times and in an amount of your
                             choosing until the line of credit is exhausted.
Single Disbursement Lump Sum - A single lump sum disbursement at mortgage closing.                           - A combination of monthly payments and a line of credit.                               

Loans made or arranged pursuant to Real Estate Broker License Endorsement #01916235,
California Bureau of Real Estate (877-373-4542). NMLS #1123301

(These materials are not from HUD or FHA and were not approved by HUD or a government agency)