Government regulations require that all reverse mortgage lenders operate under the same guidelines. This assures borrowers that as long as they are using an approved lender and obtaining an FHA insured reverse mortgage, the loan will have all the consumer protections required in this program.
It is of paramount importance that you understand the details of the program, as you will need to make some decisions along the way. Meeting with someone you know and trust will assure a smooth transaction, and you can feel confident that all your questions are being answered so that you can make informed, educated decisions.
We recommend that you select a lender whom you know and trust. Ideally, an experienced lender who can assure you the greatest depth of knowledge, and one whose expertise will make the program easy to understand and the process simple. You can be confident that 1st Reverse Mortgage USA has the best possible resources to assure your transaction is completed timely, accurately and professionally.
With very few exceptions, you should never be made to feel there are deadlines that must be met. This is an outstanding program, and once you decide it is right for you, helping the lender expedite the transaction is in your best interest.
While you should never feel you are being pressed to proceed before you are ready, you should also make sure the advice and guidance you are receiving about this program is from people who are knowledgeable about the facts of the program. Many well-meaning family members, friends and professionals may offer advice, but if their understanding about the program is not based on the facts, you may be misguided or make a wrong decision. Please feel free to use us as a resource to help you confirm any information you are getting about this program-regardless of the source.
A reverse mortgage gives you access to a portion of the equity in your home. You decide the amount of available funds to draw, and interest is assessed only against what you draw-when you draw it. Funds that you do not draw remain as equity in your home. When you draw funds, you are not required to make a monthly repayment of the equity or interest. When you or your heirs sell the home, the equity you drew and the interest that accrued will be deducted from the sale proceeds and all remaining profit from the sale is yours or your heirs.
All costs associated with your reverse mortgage must be disclosed to you in detail. All fees, including upfront fees and any recurring fees over the life of the reverse mortgage, will be added to the final payoff. If you should ever desire to make a partial or full repayment of this loan, you may do so without penalty.
Depending on the Loan Program you choose, you may have sole discretion as to how you draw your funds.
Unlike a traditional mortgage, you are not required to make a monthly mortgage payment on your loan as long as the loan requirements are met.
Your requirements in this loan program are:
1. At least one of the borrowers must occupy the home as their primary residence;
2. You must keep your property taxes current;
3. You must keep current and adequate homeowner's insurance on your home (in the case of a condominium or townhouse, keep your HOA dues current); and,
4. Perform whatever routine maintenance is necessary to keep your home in good repair so as to not lose eligibility for your homeowner's insurance
If the appraiser determines you have any urgent repairs that HUD requires as a condition of the loan, funds from your reverse mortgage can be set aside to make those repairs, and those repairs can be made in the months following the closing.
Your eligibility for this loan is not based on your credit rating. However, if you have any outstanding judgments that have been filed against you or your property, those judgments may need to be paid at closing. Reverse mortgage proceeds may be used to pay these obligations
If your property is currently in a trust, you will need to provide a copy of your trust documents. If the terms of the trust are in accordance with HUD guidelines, the loan may close in the name of the trust. If the trust is not in accordance with HUD guidelines, you may need to amend the trust or remove the home from the trust.