(FAQ’s not reviewed by or approved by FHA or Federal government)
Is HUD counseling required?
Yes, and it may be done by telephone. The counselor works for a third party, non-profit agency specializing in this education. Their only purpose is to ensure all your questions are answered and you are fully informed about the transaction.
Are there limits to the usage of the proceeds?
There are no restrictions on the usage of the funds (Borrowers must continue to pay property taxes and home insurance)
What am I responsible for doing after I have the Reverse Mortgage?
During the time the loan is in effect, you remain responsible for real estate taxes and homeowners insurance as well as any other bills associated with maintenance and upkeep of your home.
Will this affect my Medicare?
No.
How do I receive the money?
There are several ways to receive the proceeds from a reverse mortgage. Any combination of those listed below:
• Lump sum – a lump sum of cash at closing.
• Tenure – equal monthly payments as long as the homeowner lives in the home.
• Term – equal monthly payments for a fixed number of years.
• Line of Credit – draw any amount at any time until the line of credit is exhausted.
Do both spouses need to be at 62?
No. Changes that took effect August 4th 2014 allow a senior under 62 to be on the Reverse Mortgage . Call for additional details.
What if the value of the house declines?
You or your heirs will never owe more than what the house is worth.
Other questions?
Please contact us at (877)567-7476 to have any additional questions answered.
-senario-, i did successfully, qualify and receie thre benefits of an reverse mortgage for my residence. is there a monthly pay-out plan that does allow me to offer the residence “for rent”, to a different family/group of people? jim.
Thanks for the comment Floyd. A reverse mortgage is designed for a homeowner to live in the home and use it as their primary residence. But, you do have a few options, I have done reverse mortgages on a 4-plex, where the owner lives in one of the units and rents out the other 3 units. You can also find a duplex or triplex. You may also consider redoing your reverse mortgage to pull out more money and wait for the housing market to drop and buying a separate investment property. check out our Reverse Mortgage calculator to see how much more you can receive. https://www.funds4seniors.com/reverse-mortgage-calculator/ See our new blog article concerning this strategy here: https://www.funds4seniors.com/uncategorized/redfin-market-report-sellers-dropping-prices-now-a-buyers-market/