FREQUENTLY ASKED QUESTIONS
■What is a reverse mortgage?
An FHA insured mortgage product that, based upon borrower and property loan guidelines, allows you to pay off your current mortgage debt (if applicable) and/or receive cash out, without being required to make a monthly mortgage payment, provided property charges are paid current and the property is kept in good repair.
■Who insures reverse mortgages?
Today’s Home Equity Conversion Mortgage (HECM) reverse mortgage is available based upon HUD guidelines and insured through FHA.
To apply, you must be 62 years of age or older, reside in your home as your primary residence, and both Borrower and property must qualify per HUD guidelines.
■If I am married do we both have to be 62 years of age or older?
No, the reverse mortgage provides for non-borrowing spouses by way of age and/or occupancy to be recognized in the transaction. Consult your Moneyhouse professional experienced Mortgage Loan Originator for additional details and assistance.
■Can my children attend the HUD counseling session?
Yes. In fact, we urge everybody in the family to know about the transaction.
■What happens to the title to my property?
The title to your property continues to be vested in the names of the Borrower(s) throughout the life of the loan so long as the loan is maintained by the Borrower(s) per the terms, conditions and requirements of the loan documentation and HUD guidelines.
■With the reverse mortgage do I lose the opportunity to leave my house in inheritance to my children?
No. In some circumstances the reverse mortgage may make it easier for your estate to provide for your children should they desire to keep your property.
■If I choose monthly or tenure payments, when do they end?
Term payments will end based upon the number of months your loan proceeds were scheduled to be delivered to you. Tenure or lifetime payments cease when all Borrowers are deceased. Under both payment plan options, your payments may cease if the property charges are not paid current, the property no longer meets minimum property standards guidelines, the property is sold or the property is abandoned by all borrowers for a period in excess of 12 months.
■Who can offer a reverse mortgage?
Reverse mortgages are offered by HUD/FHA approved lenders.
■Can a third party charge for processing a reverse mortgage?
The cost to process and underwrite a reverse mortgage loan is considered part of your lender’s origination fee and may not be charged as a required borrower fee.
■Where do I get more information about the reverse mortgage?
You can access www.hud.gov/offices/hsg/sfh/hecm/rmtopten.cfm.
■What is the importance of the appraisal of my property at the time when applying for a reverse mortgage?
The amount of “principal limit” or available proceeds before the payment of liens, costs, fees and charges is calculated based upon the appraised value of your property as conducted by a HUD approved appraiser.
■How do the closing costs of a reverse mortgage compare with a traditional mortgage?
Today’s reverse mortgage has many different program options and features available, and compares similarly in cost to a traditional mortgage, including no-cost options.
■For whom is a reverse mortgage convenient?
The reverse mortgage is not for everybody, although it is the only option for some. If you do not have sufficient income, your credit score is not the best and you are about to lose your home or are starting to be late in your payments, the reverse mortgage can be the solution.
Today’s reverse mortgage features and options also provide for retirement planning, financial independence and lifestyle options for many seniors.
■Can a reverse mortgage be made if one has been diagnosed with dementia or Alzheimer’s?
To be able to undertake this transaction, a mental capacity is required that allows for your understanding and acceptance to make a good choice. Nevertheless, in cases where a Borrower(s) is mentally or physically challenged, the reverse mortgage program provides options available to the family and loved ones who support the Borrower(s). Additional required legal documentation may also include court assistance to provide for the Borrower(s) best interests and wellbeing may be required. Your professional experienced Moneyhouse Mortgage Loan Originator has the time and resources to help you with getting the “Right Fit” for your specific situation.
For more information please call 800-405-4554.