ntil recently, there were two main ways to get cash from your home: you could sell your home, but then you would have to move; or you could borrow against your home, but then you would have to make monthly loan repayments. Now there is a third way of getting money from your home that does not require you to leave it or to make regular loan repayments.
“REVERSE” MORTGAGES
A “reverse” mortgage is a loan against your home that you do not have to pay back for as long as you live there. With a reverse mortgage, you can turn the value of your home into cash without having to move or to repay a loan each month.
The cash you get from a reverse mortgage can be paid to you in several ways:
• all at once, in a single lump sum of cash;
• as a regular monthly cash advance;
• as a “creditline” account that lets you decide when and how much of your available cash is paid to you; or
• as a combination of these payment methods.
No matter how this loan is paid out to you, you typically don’t have to pay anything back until you die, sell your home, or permanently move out of your home. To be eligible for most reverse mortgages, you must own your home and be 62 years of age or older.
OTHER HOME LOANS
To qualify for most loans, the lender checks your income to see how much you can afford to pay back each month. But with a reverse mortgage, you don’t have to make monthly repayments. So you don’t need a minimum amount of income to qualify for a reverse mortgage.You could have no income, and still be able to get a reverse mortgage.
With most home loans, if you fail to make your monthly repayments, you could lose your home. But with a reverse mortgage, you don’t have any monthly repayments to make. So you can’t lose your home by failing to make them. Reverse mortgages typically require no repayment for as long as you — or any co-owner(s) of yours — live in your home. So they differ from other home loans in these important ways:
• you don’t need an income to qualify for a reverse mortgage; and
• you don’t have to make monthly repayments on a reverse mortgage.
HOMEOWNERSHIP
With a reverse mortgage, you remain the owner of your home just like when you had a forward mortgage. So you are still responsible for paying your property taxes and homeowner insurance, and for making property repairs.
SPEAK DIRECTLY TO A HUD APPROVED REVERSE MORTGAGE ADVISOR THAT HANDLES YOUR STATE AND CITY - 800-553-3770
Chances are you have never met a reverse mortgage lender before, but you’ll be placing your home and your future happiness in their hands. When dealing with a reverse mortgage lender, it is important that you feel comfortable with the company. The ethical revere mortgage lenders are members of the National Reverse Mortgage Lenders Association and follow its code of best practice. Therefore, you are best advised to deal with reverse mortgage lenders who are members of the NRMLA.
A Reverse Mortgage is unlike any other financial transaction. Some aspects are similar to a regular mortgage, but there are special items designed specifically for reverse mortgages. Below are the six steps that you can anticipate when you apply for your reverse mortgage with Diamond Funding:
Initial Meeting / Discussion - The first thing that we like to do is just have a general conversation, either over the phone or in person, about whether a reverse mortgage is right for you. We will talk about the pros and cons, how it all works, how much money you could expect to receive and anything else you would like to know. Then you decide if you want to take the next step.
Counseling - If you do decide that a reverse mortgage is the right choice, you will receive a free independent counseling from a certified HUD-approved counselor to make sure you have had all your questions answered and that there has been no confusion. This is a protection measure that the government has built into the process of obtaining a reverse mortgage.
Appraisal - Next we arrange for an appraisal to determine the market value of your home, and whether any repairs will be required to meet Federal Housing Administration guidelines.
Inspection - FHA requires a Wood Destroying Insect report. If evidence of damage is found further inspection may be required.
Underwriting - After the appraisal and inspection reports are complete, we go through the normal processing procedures that you may find with any mortgage.
Closing - The final step is the closing where you receive the money from your reverse mortgage. You can choose to receive the payment in one of three ways: As a lump sum, as a monthly payment for life, or as a line of credit that you can draw upon from time to time. The closing attorney will come to you should you wish to conduct the closing right in your home.
Timing - From start to finish the process can take from 6 to 8 weeks. During that time, you will have a real person available on the other end of the phone to continue to provide answers to any questions that you may have. We welcome the opportunity to show you what a Reverse Mortgage can do for you both now and in the future.
Reverse Mortgage Information
Probably the most important thing about a reverse mortgage is to work with a person that you trust. Speak with several reverse mortgage advisors and then select the one that seems best.
Your home is an investment. You paid for your home for many years, and now your home can begin to pay you back.
Reverse mortgages enable homeowners 62 years or older to access the equity in their primary residence without selling their home. Maybe you could use some extra money for monthly obligations, or perhaps you would like to vacation, purchase a motor home or even a second home. Your options with a reverse mortgage are to take a lump sum of money at closing, or receive monthly payments for life, or both.
For many people a reverse mortgage is a blessing. The reverse lender pays you money based on the equity that you have accrued in your home. Repayment is not necessary until 6 months after the borrowers no longer utilize the home as their primary residence. When you sell your home or no longer use it as your primary residence, you or your estate must repay the cash you received from the reverse mortgage plus interest and other deferred finance charges.
Reverse mortgages are ideal for homeowners who are retired, or prefer to retire, and would like to supplement their retirement income. The money is nontaxable and does not interfere with Social Security or Medicare benefits. Your lender cannot take the property if you outlive your loan, nor can you be forced to sell your home to pay off your loan even if the loan balance grows to exceed your property value.
Reverse Mortgages are not just for people that need extra income. In recent years, some with above average means have obtained a lump sum reverse mortgage on their primary residence and utilized the loan proceeds to purchase a second home. Amazing, but there is never any payments due on either home.
Diamond Funding would look forward to exploring the many reverse mortgage options that are available to you. There is no obligation, and if a reverse mortgage is not for you we will be the first one to advise you accordingly.
Reverse Mortgages are certainly worth looking into since you will receive a lot of money to do something nice, and you will never have to make a payment for the rest of your life.
Customer Commitment Our service culture is precisely in sync with our customers' needs. It's a mindset that values customized solutions over off-the-shelf thinking. We listen more than we talk, and when we act, it's driven by customer goals. Our customers are some of the most intriguing people. We're proud of our role in their success, and are deeply committed to expanding our customers' growth. At the center of our commitment are our people, some of the kindest we've known. We are innovators, collaborators and exceptional performers, all made evident by the facts: Over 120,000 have partake in our services. We understand that when we do more, our customers can do more. With every problem solved, we are delivering on a promise to our customers: your success is our business.
Serving MA, NH, RI, CT, WV, VA, PA, OH, MO and FL.
Office Locations:
189 Main Street, Milford, MA - (508)-381-6400
896 Hathaway Road, New Bedford, MA - (508) 441-4100
Reverse Mortgages are not just for people that need extra income. In recent years, some with above average means have obtained a lump sum reverse mortgage on their primary residence and utilized the loan proceeds to purchase a second home. Amazing, but there is never any payments due on either home.
