A Flexible Reverse Mortgage is an FHA insured loan for senior homeowners who are
62 or older, and live in their home. As the name implies, it is often considered
the "reverse" of a typical mortgage. The Lender allows seniors to utilize part of
the equity in their home, but are not required to make monthly payments on the loan!
There are modest income, credit and tax & insurance payment history requirements,
and once funded, there is no loan repayment required as long as borrower lives in
the home, pays property taxes, and maintains hazard insurance! Borrowers have the
FLEXIBILITY to make payments if they choose, and doing so will increase any available
line of credit which is a lifeline when the need arises. Borrowers cannot lose their
home under normal circumstances, but please understand foreclosure may occur if property
taxes and insurance are not paid, or for failure to otherwise comply with the loan
terms. Money from a Flexible Reverse Mortgage can be used any way that the homeowners
choose and is non-taxable. YOU NEVER owe more than the original value of your home!!,
regardless of property values or loan balance.
Who Can Apply For A Reverse Mortgage?
Homeowners 62 or older can apply for a reverse mortgage. The youngest borrower in
the home must be at least 62 on their nearest birthday.
Use The Money For Anything, Even For A Home Purchase!
Seniors who do a Flexible Reverse Mortgage may use the money they receive for any
purpose. Use the money to pay off debts, pay taxes, make home repairs, pay for children's
education, pay off an existing mortgage, pay for medical expenses, or just spend
the money for enhanced retirement. It's easy to see how a Flexible Reverse Mortgage
has made dreams come true for hundreds of thousands of American Seniors! And now,
seniors can utilize a reverse mortgage to make a home purchase in Texas!
It's Still The Borrower's Home.
Doing a Reverse Mortgage does not change the title to the home. Seniors still own
their home and still make all the decisions concerning the disposition of that home.
Seniors have the same rights as a homeowner they always had.
Making the Equity in A Home Work For The Homeowner!
Homeowners who have equity in their home gain nothing from that equity. It just sits
there. It does not earn income for them like other investments. In fact, paying taxes
on a home means that the unused equity in the home is actually costing money! A Flexible
Reverse Mortgage allows senior homeowners to access some of their equity and put
it to use. The proceeds from a Reverse Mortgage could be put into income producing
investments that could actually create additional cash flow! Taxes on the assessed
value and hazard insurance still have to be paid, however, a portion of the equity
can now be accessed. Plus, although not guaranteed, home values have traditionally
increased over time as well.
The "Flexible" Part Of A Reverse Mortgage!
Homeowners who have remaining cash available to them in the Reverse Mortgage after
paying off a mortgage or closing their loan, can utilize that remaining money in
the form of a line of credit. Borrowers have the "Flexibility" of making payments
on their principal loan balance if they want to and doing so will increase the available
Line of Credit. The line of credit also grows every year even if payments are not
made. An example, often seniors cannot qualify for loans for larger items, such as
a car. The Line of Credit can be used to purchase a car for cash and make repayment
to the reverse mortgage, thereby rebuilding the line of credit for future use.
Interest Rates on Mortgages Are Very Attractive Now!
There could possibly never be a better time to consider a flexible reverse mortgage!
Interest rates are near historic lows on all mortgages!! To find out how a flexible
reverse mortgage can help improve your life or the life of a loved one, Call Patrick
O'Neil today, or email for more information!
Some of the Key facts and Features of a Reverse Mortgage (HECM) You Need to Know.
• FHA insures fixed interest rate reverse mortgages, as well as annual and monthly
adjustable interest rate reverse mortgages.
• Borrrowers have the ability to change the way they receive payments from their
HECM at any time, provided funds are available.
• Fixed interest rate reverse mortgages are limited to a Single Disbursement
Lump Sum Payment option where there is a single,
full draw at loan closing and the mortgage does not provide for future draws
by the borrower under any circumstances.
• Adjustable interest rate reverse mortgages provide for five, flexible payment
options, all allow for future draws of available funds.
• The amount of funds available to the borrower is currently determined by the
age of the youngest borrower
(or Non-Borrowing spouse for FHA case numbers assigned after August 4, 2014).
• The disbursement of mortgage proceeds during the first twelve-month disbursement
period is subject to an initial
disbursement limit as determined by requirements set by the Secretary of HUD
in Mortgagee Letter 2013-27.
• The borrower has the statutory right to select his or her interest rate (ﬁxed
or adjustable) at the time the mortgage is originated.
• For borrowers who select an adjustable interest rate loan, the borrower has
the ability to change payment plans at
any time throughout the life of the loan, provided funds are available to
• The borrower has the right to determine what amount, if any, to draw from
the loan, over and above what is necessary
for the payment of mandatory obligations and subject to the draw limits.
This website was not created by HUD or FHA and has not been approved by HUD or any