Common Questions and Answers to
Reverse Mortgage Questions:
.
Do I lose my house?
No you keep title
and ownership of the house.
You have to follow the three rules
that everyone should know about a
reverse mortgage.
1. You have to
pay your property taxes.
2. You have to pay your
homeowners insurance and
give the bank this information
when they request it.
3. You have to keep the house up.
This is more of a structural issue:
ie: if you let your roof go completely
your house will fall down.
.
Do my heirs get stuck with the
debt?
No the mortgage remains with
the home and gets paid off when the
house is sold or refinanced after
you move on, the government
insurance protects your estate and
your heirs.
.
Should I only get a reverse
mortgage if I am stuck?
No many seniors are looking into a
reverse mortgage that have no debt
at all.
.
Can I Refinance a Reverse
Mortgage?
Yes, but you should do it right the first
time, and only refinance if it makes
sense to.
.
Can I get a Reverse Mortgage when
I buy a new house?
Yes, you can do a
reverse to purchase which is a great
option for downsizing or relocating.
What property types are eligible?
Only your owner occupied residence,
One to 4 family homes, including
condos, and mixed use homes
with up to 4 residential units.
There are restrictions
on the commercial square footage vs.
residential square footage, which
depends on the number of total units.
If you have only 2 units, one residential
and one commercial, the residential
square footage has to be equal
to or bigger than the commercial
portion. Condo's must
be FHA approved,
spot loan approvals are no
longer permitted.
.
Why does everyone think you lose
your house?
There were and still are private reverse
mortgage banks that made loans that
forced the borrowers to pay the loans
off after a certain time period. These
loans contained a balloon payment,
also known as a bullet or a call after
a set period of time. You can view
www.ReverseMortgageDoILoseMyHouse.com
for more information on this topic.
.
Can I make payments?
Yes you can make payments on
any type of FHA or government
insured reverse mortgage.
You will get monthly statements
showing your balance so that you
can keep your eye on it.
You won't be asked to make a
payment, or receive a payment
form. Contact your customer
service to tell you how to make
payments if you want to.
.
Can I write off my interest
accumulated for taxes?
Only if you make payments and
pay the interest can you write
off the taxes for this.
(always consult with an
accountant or CPA for expert tax
advice)
.
What options will my heirs
have if they want to keep our
house?
They can do a gift of equity purchase
to buy the home and use the
existing equity as the downpayment.
They can incorporate all closing costs
into the loan as a seller's concession.
The other option of refinancing will
only work if you have the heirs on title.
To put the heirs on title see our
section dedicated to Life Estates.
.
How does a reverse mortgage work?
A reverse mortgage allows you to
access a portion of the available
equity in your home. Your
existing mortgages must be paid from
the proceeds and the remaining
that you qualify for based on your age
and the value of the home is yours.
You can use these funds for
things you really need.
The proceeds are yours and
you decide what to do with these
funds.
.
Who pays back my reverse
mortgage?
Your heirs will decide to sell or
refinance the home. When
this is done the mortgage is paid off
from the proceeds.
.
What do my heirs have to do
after I move out or pass on with
a reverse mortgage?
After you and anyone else
on the mortgage pass on or
move out, your heirs are to tell
the bank what happened and what
they intend to do. They then have
3 months to sell or refinance the
home and if they can't do it they
just have to tell the bank they need
another 3 months. You have a total
of one year to sell or refinance
the house.
.
Whatever your question is
we are here to help you
get the right answers
Call1-800-254-3595 X 2041
for free recorded information
Press 0 to be connected
to a Reverse Specialist
in Nassau County
