South Dakota Reverse Mortgage

The South Dakota reverse mortgage program allows senior homeowners to cash out their home equity and spend it on things that matter, such as medical bills, trips, housing, and daily living expenses. It’s not difficult to qualify for one of these loans. If you’re over the age of 62 and you own a home with equity, you are ready to apply.

Reverse Mortgage South Dakota Information

These loans are unique and unlike any other loans available. They truly do function in reverse. With a reverse mortgage, your lender buys the full value of your home equity from you and pays you for it. This puts cash in your pocket in exchange for the investment qualities of your home. The cash is something that many seniors need, while home equity, in the later years of life, is often less useful. Reverse mortgages in South Dakota can help seniors better leverage their financial holdings.

south dakota reverse mortgage The money you get from your lender is entirely yours. No one else owns a cut of it or has any right to it. It comes directly from your own home equity. This allows you to spend it on anything you want. You can learn more about the ways a reverse mortgage can benefit you by researching reverse mortgage information on this site and elsewhere.

When your lender purchases your home equity from you, the money you receive as payment can be provided in a number of ways. Choose from the following payment arrangements.

Through a credit line you can access as you please.
As a lump sum at the start of the loan.
In monthly installments of a preset amount.
As any combination of the above forms.

You can’t lose your home in a reverse mortgage. This is one of the many benefit of this loan type. Though ownership of your equity has transferred to your lender, ownership of your home remains with you. The title or deed of the home does not transfer. Your lender can’t take over your home to pay back your debt, even after the equity runs out.

You won’t have to pay back the loan yourself, either. Unless you decide to move to a new home, you can stay in your home for the rest of your life without paying your lender a single cent. Your previous mortgage will be eliminated as part of the reverse mortgage. You can spend the best years of your life truly debt free.

Upon your death, the responsibility of paying back the reverse mortgage will transfer to whoever receives ownership of your home. This is often your heir. Your heir can pay back the loan in a monthly fashion, through a refinance, and live in the home. If your heir has no interest in keeping the home, he or she can sell it and pay back the reverse mortgage with the proceeds.

To learn more about what happens at the end of a reverse mortgage, read through the HUD’s Frequently Asked Questions page. If you don’t find the answers you need there, get in touch with one of the lender in our network.

South Dakota Reverse Mortgage Lenders

Once you’ve decided to take out a reverse mortgage, you’ll need to find a lender to close your loan. This is easier said than done. There are plenty of lenders in South Dakota who would be more than willing to work with you, but you must find the one that best meets your needs.

Lenders will sometimes charge high fees to administer reverse mortgages. Compare the fees and rates offered by at least four or five lenders in your area, and pick the lender who can offer the best terms on the loan deal.

For more information on the process of finding a lender and applying for a reverse mortgage loan, talk to one of the lenders in our network or read our reverse mortgage checklist.

About South Dakota

Historically, South Dakota has been known for its agriculture and rural lifestyle. Until recently, in order to retain more residents, South Dakota sought to diversify its economy to include the service industry. Now, the service industry is the largest industry in South Dakota. Sioux Falls and Rapid City are the two largest cities in the state and are home to many seniors.

This sector includes the retail, finance, and health care industries. Health care is a major part of the state’s economy, which makes this region ideal for many retirees. The South Dakota Retirement System helps over 70,000 older South Dakotans live healthy and financially secure lives. A reverse mortgage is one option for you if you need to secure income for retirement.