To be eligible for a reverse mortgage, any interested individual(s) must be 62 years old or older. In the case that a husband is over the age limit and his wife is under the age limit (or vice versa), the older of the two homeowners would still qualify for a reverse mortgage. Another important factor in determining qualification is that you must have a low mortgage balance compared to your home's value or own your home outright. The final requirement is that your home be your primary residence and be a single family dwelling or two-to-four unit property. Townhouses, detached homes, units in condominiums, and some manufactured home are eligible. The Federal Housing Administration (FHA) must approve all condominiums.
At this time, we are able to offer reverse mortgages in Florida.
A home equity line of credit will also release equity in your home in the form of cash to be spent as you like. The main difference is that a home equity line of credit will need to be paid back monthly as do all forward mortgages. A reverse mortgage does not have to be repaid until you sell your home or no longer occupy the residence.
ousing repair grants and other miscellaneous grants usually do not have to be paid off. Any mortgages or federal liens must be paid off prior to or at the closing of your reverse mortgage. This includes but is not limited to mortgages, a home equity line of credit, property tax liens, etc.
The original loan amount plus accrued interest will be paid once you sell or no longer occupy the residence.
Reverse mortgages are considered non-recourse loans meaning you cannot owe more than the value of your home. Your assets and your heirs' assets are never taken into account when it comes to lending a reverse mortgage. Your home serves as the only collateral.
Once you no longer occupy the residence, your estate will repay the loan balance with proceeds from the sale of the property or by refinancing the transaction. In the first case, the estate will retain any additional proceeds from the sale. If your estate decides to refinance, they will retain the home and any additional equity.
The Internal Revenue Service considers your reverse mortgage proceeds loan advances and not taxable income.
It never hurts to check with a local real estate agent or appraiser to give you an estimate on the value for little to no charge. To play it safe, you can check the taxable value online in many counties. The tax assessment is a good starting point, but it may not accurately reflect current market conditions. A full interior/exterior appraisal will be ordered after application to nail down a specific amount.
Homes placed in a "living trust" may qualify for a reverse mortgage. The "living trust" documents will be reviewed by a real estate attorney for approval.
As Power of Attorney, you will be able to be the main contact person, but the homeowner listed on the title must attend counseling and sign the application documents. The Department of Housing and Urban Development requires the homeowner to act on their own behalf unless they have a doctor's note citing mental incompetency based on a particular reason.
The homeowner will be responsible for paying his/her own taxes and insurance premiums. In the case the homeowner does not have an insurance policy on the house, we will help with setting one up prior to closing.
The typical amount of time from application to closing for a reverse mortgage is 30 to 45 days.
Rates are determined weekly based on the information found below. There are three main reverse mortgage products, each with different rate characteristics. Home Equity Conversion Mortgage (Monthly Adjustable) 1-yr. T bill + margin (1.50) No monthly/annual cap Lifetime cap = 10% above initial rate Home Equity Conversion Mortgage (Annually Adjustable) 1-yr. T bill + margin (3.10) 2% annual cap increase Lifetime cap = 5% above initial rate Fannie Mae Homekeeper Reverse Mortgage 1-month CD index + margin (3.40) No monthly/annual cap Lifetime cap = 12% above initial rate.