REVERSE MORTGAGE KNOWLEDGE CAN HELP YOU WITH SENIOR BORROWERS

The reverse mortgage is a product designed to assist seniors aged 62 or older in borrowing against the equity in their homes. With this loan, also known as a home equity conversion mortgage (HECM), the amount that can be borrowed is based on age, home value and the amount of equity the borrower has in their home. The equity can be tapped as a lump sum, drawn in monthly payments or taken as needed. The type of access depends on whether the loan is fixed or adjustable.

There are lenders who only specialize in HECM products. Applications will not be considered until the senior attends an FHA-required reverse mortgage counseling session first. Borrowers qualify based on their ability to pay property taxes, insurance and general home maintenance.

The fees for this product can be part of the new loan balance, which does not need to be paid until the borrower dies or moves out of the home. Interest on the balance accrues monthly and is added to the loan balance.

A reverse mortgage can also be used to buy a resale home. A senior buyer using this type of loan would not have to make monthly mortgage payments after they put down the minimum required based on their age. Reverse mortgage home purchases allow seniors to be more mobile while still maintaining a quality lifestyle.

Call or email GenNEXT Funding to set up an appointment to review the details of this loan product with your senior clients. Phone 800.773.6531 | Email [email protected]