Welcome to "House Rich and Cash Poor.Com" The Senior Citizens Reverse Mortgage Information Resource.
On this page we are going to offer very basic information about Reverse Mortgages. We will try to offer brief, concise information which answers the questions we most often encounter. If you have a specific question or want further clarification just e-mail your inquiry to: email@example.com or call toll free: 800-481-9999
1.The minimum age to apply for a Reverse Mortgage is 61 years 6 months. The transaction can not fund until all seniors have had their 62nd Birthday.
2. Existing Mortgage Loans can be paid off. Owning your Home "Free and Clear" is not necessary.
3. Qualifying for a Reverse Mortgage has become a bit more complicated recently.
You will not be automatically disqualified should you have Credit Problems. Your ability to Pay the Taxes and Insurance will be assessed. The qualification standards are quite liberal. We will be happy to assist you in navigating the process.
4. No restrictions on how you use the proceeds of your Reverse Mortgage. Repair your home, help a child or grandchild, buy a car, take a cruise, increase your income, get a line of credit - whatever. It's your money - use it as you wish.
5. Spouses under age 62. If both spouses agree an underage spouse be removed from title to the property. The older spouse (or partner) may obtain a Reverse Mortgage in their name only. There are some restrictions which we will discuss with you on request. This is a decision that should not be made lightly. For some it is a solution which merits consideration.
6. Foreclosure, Bankruptcies, Tax Liens, Judgments, etc. Unpleasant circumstances which we encounter often enough to address here. We can cure foreclosures with a Reverse mortgage, in fact we do several every month. HUD/FHA even gives you special Treatment if you are in foreclosure. We do not want any Senior to lose their home. Bankruptcies must be discharged 1 day, Chapter 13's can be paid off, Tax Liens settled, Judgments paid all from the proceeds of a Reverse Mortgage.
7. Home repairs, re-roofing, re-modeling etc. are a frequent reason for obtaining a Reverse Mortgage. Required Repairs may be completed after the Reverse Mortgage closes by using a Repair sit aside account .
We collect Contractors repair estimates and arrange for the contractors to be paid from an escrow account upon completion of the needed work.
8. Monthly income is available from the HUD/FHA Plan and the FNMA "Homekeeper". Other popular methods of accessing Reverse Mortgage benefits are Lines of Credit and Cash advances at closing. The program is user friendly. We can design a benefit payout to suit you specific needs.
9. Many Seniors ask "What happens if I live too long?" The short answer is nothing. A Senior can not outlive a Reverse Mortgage. If the Senior opts for guaranteed monthly income the guarantee is guaranteed for life. The Credit Line and cash advance options go on as long as the senior lives. Even if the Senior ends up owing more than the property is worth the Reverse Mortgage is not due until they are gone. You will not be kicked out of your house if the balance on the Reverse Mortgage exceeds the value of the property. You'd be surprised at how often we hear that concern.
10. Credit Line Growth Rate. Is it interest or isn't it? The Credit Line is not earning interest. The unused portion grows by a factor equal to the interest rate being charged on the existing principal balance plus the Monthly Mortgage Insurance Premium. The growth is compounded monthly or annually and it is a non-taxable event. In fact, all proceeds from a Reverse Mortgage are tax free.
11. How Much can I get? Your benefit is calculated using a combination of the following factors:
1. your attained age.
2. The Fair Market Value of your Property.
3. All borrowers statistical Life Expectancy.
4. A property value appreciation rate approximately equal to the rate of inflation.
5. The current and expected interest accrual rate.
6. The maximum HUD/FHA insurable loan amount in your county. Currently $625,500.00 is the maximum value considered value. Property values exceeding $625,500.00 are not considered in the calculation of the amount available to you.
12. I own two homes. Can I get a Reverse Mortgage on both? We know of instances where a Husband and wife have obtained Reverse Mortgages on 2 homes by obtaining one in the husbands name and one in the wifes name. An unmarried person can only have one Reverse Mortgage.
13. I have a Reverse Mortgage, Can I refinance for additional money? Yes you can, as long as additional benefits are available. We recently refinanced one of the first Reverse we made. This Senior was in her late 80's and had exhausted her benefits. After the refinance she was able access an additional $180,000.00 of her home equity.
14. Can I purchase a home using a Reverse?
The short answer is yes. The HUD/FHA program does accomodate purchases at this time. The amount a Senior is eligible for depends on the Purchase Price as well as the applicants age.
Your Inquiry with specific questions is welcome. You may inquire anonymously if you wish.