Are you considering a reverse mortgage? Here are some answers to commonly asked questions about the HECM, Home Equity Conversion Mortgage for Seniors aged 62 and up:
Q: With a Reverse Mortgage, do I retain ownership of my home?
A: Yes. You own your home and retain the title. You have no mortgage payments, but you are responsible for paying the property taxes and for maintaining hazard insurance. Proceeds from your reverse mortgage can be set aside to ensure payment of property taxes and insurance. Funds can also be allocated for future home repairs and maintenance. As with most mortgages, as long as you continue to live in your home, maintain the home, pay property taxes and maintain homeowner's insurance, you can stay in your home as long as you choose.
Q: Are there any out-of-pocket expenses with a reverse mortgage?
A: All closing costs can be financed with the proceeds from the reverse mortgage; you may be required to pay for an appraisal.
Q: What about income requirements and credit?
A: There are no income requirements nor are there any credit requirements. One can have bad credit and still qualify for a reverse mortgage, as long as they do not owe the federal government money. The reverse mortgage benefits are determined by the age of the senior and the equity in the home; credit and income are not determining factors with a reverse mortgage.
Q: Do I lose any of my federal benefits by selecting a reverse mortgage?
A: Social Security and Medicare benefits are not affected. Supplemental Security Income (SSI) and Medicaid are not affected either, as long as all monthly advances are fully spent each month.
Q: Can I pay back the equity I've borrowed?
A: Yes, you may increase the equity in your home by paying all or any portion of your reverse mortgage.
Q: What happens when I pass away?
A: If your spouse is also listed on the title to your home, he/she will be able to continue residing in the home and receiving the benefits of the reverse mortgage. If you do not have a surviving spouse, all equity remaining in the home will pass to your heirs. Your heirs can choose to sell the house or keep the home and apply for a traditional mortgage to finance the outstanding balance. In that situation, the lender will work with your heirs to help them decide how to proceed.
Alan Faitel is an experienced real estate professional who has a current passion for assisting homeowners in financial distress. If you are a senior, aged 62 and up, Alan will be happy to help you determine if you qualify for a reverse mortgage. If you have loved ones who could use some additional financial stability to enjoy a more comfortable retirement, contact Alan Faitel at 248-363-0100 or email Alan at afaitel@yahoo.com Learn about other services Alan provides at http://www.oaklandmichiganhomes.com
We buy homes using private funds so there is no need to wait for bank approvals. If you need to sell your home and close quickly we can complete the transaction within just a few days.
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