Whether you are considering a reverse mortgage for yourself or doing research on behalf of a family member or client, we should address the elephant in the room first.A lot of people out there, perhaps yourself included, are wary of reverse mortgages because several years ago there were reports of seniors being cheated out of their homes and life savings in the name of a reverse mortgage.Seniors left homeless, heirs with nothing to inherit, the stories were horrific.Dishonest lenders and family members were abusing this new loan program and giving the entire concept a bad name.
Is a reverse mortgage for everyone?No, of course not.No one product, in any industry, is a one-size-fits-all solution for every consumer.However, for borrowers who are 62 or older and have sufficient home equity, this loan program has the potential to be life-changing, and in a very good way.
The short explanation is that this is an FHA loan program, insured by the government, that allows you to convert your home equity to spendable cash.
You, the borrower, own the home, may use the funds for whatever purpose you desire and may sell or refinance the house at any time.You, the borrower, may choose to have a lump sum payment, a line of credit, fixed monthly payments for as long as you live in the house or a combination of these options, depending upon your particular situation.
At Orion Mortgage, we believe that the more informed a borrower is prior to applying for a loan, the more satisfied they will be at the closing of the loan.
And, quite frankly, those well-informed and satisfied borrowers are our most effective form of advertising.With all of that in mind, we offer free mortgage seminars, 1:1 consultations and we are always happy to discuss any mortgage with a borrower’s adult children or other concerned parties – with the borrower’s consent, of course!
To qualify for a reverse mortgage, you must:
Be 62 years of age or older
Complete a HUD-approved counseling session
Have a satisfactory credit and payment history (this is different than your credit score)
Live in the home being refinanced as your primary residence and have sufficient equity
Plan to live in the home you are purchasing with a reverse mortgage as your primary residence
Once you have a reverse mortgage in place, you are expected to:
Maintain the property according to FHA requirements
Pay property taxes, insurance and any HOA dues
We understand that each borrower has a unique situation and unique goals for the future.As a small, local mortgage company, we are able to take the time to listen to your particular situation and help you select the right mortgage for your goals.
Please contact us with any questions you may have while you are researching this loan program.