A reverse mortgage is a government insured FHA/HUD approved loan that allows you to access some of the equity that is tied-up in your home. You will not have mortgage payments, though you will need to maintain the home and pay property taxes and insurance.
When the last borrower leaves the home, the heirs decide what the heirs always decide…will they keep the home or sell it? If they keep the home, they refinance the home into their own names at 95% of the appraised value at that time, or the amount of the loan balance, whichever is less. It they want to sell the home, they receive all the loan proceeds after the mortgage has been satisfied.
The heirs and/or your estate is not responsible for that debt. The heirs can refinance into their names for 95% of the appraised value of the home at that time, or they can simply sell the home. An FHA Reverse Mortgage is a non-recourse loan, no one ever owes more than the home is worth.
With an FHA/HUD insured reverse mortgage, the mortgage insurance kicks in and repays the amount of the reverse mortgage that is higher than the value of the property. Your heirs and your estate are not responsible.
• You will never have a mortgage payment as long as at least one borrower lives in the home for at least 6 months and one day each year. However, you will need to pay property taxes and insurance and maintain the home.
• You will never owe more that the home is worth.
• The loan proceeds are not taxable, and will not affect your social security or Medicare benefits.
• You will have a more comfortable financial situation in retirement.
Silver Leaf Mortgage, Inc.
Matthew Witt NMLS# 1638881
James J. Doyle NMLS# 335659
Kathleen C. Muni NMLS# 1368981
Robert C. Muni NMLS# 719030
DiAnne Cooper NMLS# 1620581
Nate Rees NMLS# 1830587