What is a Reverse Mortgage?

What is a Reverse Mortgage? : 

What is a Reverse Mortgage? Should I Pursue One? Sherman Mohr, Past President, TN Association of Mortgage Brokers

What is a reverse mortgage? : 

What is a reverse mortgage? A reverse mortgage is a special type of home loan that lets you convert a portion of the equity in your home into cash. But unlike a traditional home equity loan or second mortgage, no repayment is required until the borrower(s) no longer use the home as their principal residence.

Can I qualify for FHA's HECM reverse mortgage? : 

Can I qualify for FHA's HECM reverse mortgage? To be eligible for a FHA HECM, the FHA requires that you be a homeowner 62 years of age or older, own your home outright, or have a low mortgage balance that can be paid off at closing with proceeds from the reverse loan, and you must live in the home.

Can I apply if I didn't buy my present house with FHA mortgage insurance? : 

Can I apply if I didn't buy my present house with FHA mortgage insurance? Yes. It doesn't matter if you didn't buy it with an FHA-insured mortgage. Your new FHA HECM will be FHA-insured.

What types of homes are eligible? : 

What types of homes are eligible? To be eligible for the FHA HECM, your home must be a single family home or a 1-4 unit home with one unit occupied by the borrower. HUD-approved condominiums and manufactured homes that meet FHA requirements are also eligible.

What's the difference between a reverse mortgage and a bank home equity loan? : 

What's the difference between a reverse mortgage and a bank home equity loan? With a traditional second mortgage, or a home equity line of credit, you must have sufficient income versus debt ratio to qualify for the loan, and you are required to make monthly mortgage payments. The reverse mortgage is different in that it pays you, and is available regardless of your current income.

What's the difference between a reverse mortgage and a bank home equity loan? : 

What's the difference between a reverse mortgage and a bank home equity loan? The amount you can borrow depends on your age, the current interest rate, and the appraised value of your home or FHA's mortgage limits for your area, whichever is less. You don't make payments, because the loan is not due as long as the house is your principal residence. Like all homeowners, you still are required to pay your real estate taxes, insurance and other conventional payments like utilities.

Can the lender take my home away if I outlive the loan? : 

Can the lender take my home away if I outlive the loan? No. You do not need to repay the loan as long as you or one of the borrowers continues to live in the house and keeps the taxes and insurance current. You can never owe more than the value of your home at the time you or your heirs sell the home.

Will I still have an estate that I can leave to my heirs? : 

Will I still have an estate that I can leave to my heirs? When you sell your home, you or your estate will repay the cash you received from the reverse mortgage plus interest and other fees, to the lender. The remaining equity in your home, if any, belongs to you or to your heirs.

How much money can I get from my home? : 

How much money can I get from my home? The amount you can borrow depends on your age, the current interest rate, and the appraised value of your home or FHA's mortgage limits for your area, whichever is less.  Generally, the more valuable your home is, the older you are, the lower the interest, the more you can borrow.

Should I use an estate planning service to find a reverse mortgage? : 

Should I use an estate planning service to find a reverse mortgage? FHA does NOT recommend using any service that charges a fee for referring a borrower to an FHA lender. FHA provides this information free, and HUD-approved housing counseling agencies are available for free or at very low cost. You may contact Michael Sigmon at Reliant Bank for details. Mike Sigmon Link

How do I receive my payments? : 

How do I receive my payments? You have five options: Tenure - equal monthly payments as long as at least one borrower lives and continues to occupy the property as a principal residence. Term - equal monthly payments for a fixed period of months selected. Line of Credit - unscheduled payments or installments, at times and in amounts of your choosing until the line of credit is exhausted. Modified Tenure - combination of line of credit with monthly payments for as long as you remain in the home. Modified Term - combination of line of credit plus monthly payments for a fixed period of months selected by the borrower.

Thank You for Your Interest : 

Thank You for Your Interest Here is a true story: Will and Shirley (both aged 63) raised six children over 30 years in their suburban home. Both of them have had significant health problems in the past few years: Will had brain surgery and Shirley was disabled with severe injuries from a fall. Then a few years ago, two of their adult children had to move back into their home due to debilitating illnesses. Even though Will continues to work (28 years on the same job), they just no longer had sufficient income to make ends meet. They were struggling to make their two mortgage payments. They fell so far behind that foreclosure action was started. They only owed a total of $45,000 on their $200,000 home. Will & Shirley were worried that they would lose their home of 30 years right on the cusp of retirement. Their new Reverse Mortgage saved the day. Not only were the defaulted mortgages paid off, but they also had money for badly needed home repairs, plus extra money to pay off some other old debts. All this WITH NO MORTGAGE PAYMENT…. If you have a family member or friend who may be in need of a Reverse Mortgage, have them call me or send an email with their contact information and I will call them. Michael Sigmon Reliant Bank's Reverse Mortgage Specialist Direct  615-221-9155 Cell  615-202-6245 Resource Used : http://www.hud.gov/offices/hsg/sfh/hecm/rmtopten.cfm