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Secure Your Retirement Income with a Reverse Mortgage

A reverse mortgage is a specialized loan type designed to provide retired seniors the ability to tap into their home equity and generate additional income without the obligation of repaying the debt.  Reverse mortgage funds can be received as monthly payments, in a lump sum, through a line of credit, or as a combination of two or more of these options.

Such flexibility makes it possible to tailor your payouts according to your personal circumstances and improve your own financial situation as you see fit.  It’s our goal to provide you the reverse mortgage information you need to make the best decision for yourself and your family.

Qualifying for a Reverse Mortgage

Homeowners over the age of 62 can qualify for a reverse mortgage if they participate in a consumer information seminar held by an approved HECM counselor.  The property also must qualify as a single family resident (SFR), multi-family residence of 2-4 units, HUD-approved condominiums and manufactured houses that meet all FHA guidelines.

If you’re a senior and you plan to take advantage of the reverse mortgage option, you must live in the home as your primary mortgage.  You cannot take out a reverse mortgage on a home you don’t live in, even if you own it as an investment property or a vacation rental.  The home you mortgage must be your primary residence.

You should expect to continue living in your home for a significant amount of time.  If you move to a new residence, the loan amount provided to you up to that point will become immediately due.  If you intend to remain in your current residence, a reverse mortgage is a good way to gain additional monthly income.

HUD (FHA) Reverse Mortgages

Due to federal regulations, all loans that offer these advantages to seniors are government-backed HUD and FHA reverse mortgages. You can experience peace of mind in knowing that this is a secure and protected loan type.  The HUD is one of the best places to turn for information about reverse mortgages.  Their helpful summary of the program is a good place to find information.  If you want to read more, click the reverse mortgage information link above to reach a detailed outline of reverse mortgages and how they work.

Reverse Mortgage for Purchase

You can use a reverse mortgage to move into a new home if you purchase the home during the closing process of the reverse mortgage.  In this case, the equity from your current home is used to make a substantial down payment on the home you wish to purchase.  The reaming equity is provided to you as income, and the reverse mortgage debt that you owe is determined by the value of the new home.

This option is valuable for seniors who wish to relocate in order to live in closer to their families or friends.  The reverse mortgage purchase option is much like a streamlined refinance, home sale, and new home purchase all at once.  You don’t have to worry about extraneous paperwork or multiple fees.  It’s one of the best home purchase opportunities available to seniors who qualify.

Reverse Mortgage Counseling

As mentioned above, you’ll have to attend reverse mortgage counseling if you plan to take out a reverse mortgage.  This meeting, though mandatory, is for your own benefit.  It provides you a safe environment in which to learn everything you can about the reverse mortgage process.  Come prepared with any questions you may want to ask your counselor. If you have any questions now, check our reverse mortgage FAQ for answers.

411 LoanDESK

The most important decision you’ll make will be selecting the right reverse mortgage lender.  Find the lender who offers to the lowest rates and charges the lowest fees, but make sure your lender is qualified and experienced enough to guide you through the process.  We maintain an active network of qualified mortgage professional who are ready and willing to help with this important financial step.

We provide you with a secure LoanDESK dashboard, a service platform exclusive to this website that allows you to contact these lenders.  When you're ready to initiate confidential interaction with the top mortgage lenders in your local area, simply launch the LoanDESK feature.

We invite you to ask questions using our Ask a Question feature, which allows any of our 600+ mortgage loan experts to respond.  However, if you feel that your questions are best answered on a personal level or you are ready to confidentially meet with a mortgage lender, we invite you to take advantage of our exclusive LoanDESK dashboard.

• You are matched to local lenders according to your specific criteria.
• Matched brokers are provided with your specific loan scenario, often while keeping your personal identity anonymous.
• Your questions are answered and messages are exchanged safely, securely and privately.

Applying for a Reverse Mortgage

Once you’ve attended counseling and selected a lender, it’s easy to apply for a reverse mortgage.  You don’t need to provide any credit background.  Your lender won’t need extensive paperwork or personal documentation.  Follow the steps outlined in our reverse mortgage checklist to apply for your reverse mortgage and secure the income you need for retirement.

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