Corporate Office:
2650 Camino del Rio North,
Suite 350
San Diego, CA 92108
Utah DRE #: 6620998-MLCO

Utah Agents:
Tel: (801) 717-5200
Fax: (801) 491-8842
Info@safundingutah.com
www.safundingutah.com

Reverse Mortgage Basics
 

Home Equity Conversion Mortgages (commonly called a Reverse Mortgage) are becoming increasingly popular in America.  Since the beginning of the program, over 300,000 reverse mortgages have been provided to American Seniors.  A reverse mortgage done by HUD (Department of Housing and Urban Development) is a federally insured, private loan, and it’s a safe plan that can give older Americans greater financial security.

At this point the Federal Government does have a limit on the number of Seniors that will be accepted into this program. 

Many seniors have used a reverse mortgage to supplement social security, meet unexpected medical expenses, make home improvements, and many other needs.

Since your home is probably your single largest investment it is wise to know more about reverse mortgages in order to decide if one is right for you. 

A reverse mortgage is a special type of home loan that lets a homeowner convert a portion of the equity in his or her home into cash.  The equity that has built up over the years can be converted into monthly payments to you (other options are also available – (see FAQs), but unlike a traditional home equity loan or second mortgage, no repayment is required until the borrower(s) no longer use the home as their principal residence.

Here is a quick run-down of the basics of a reverse mortgage:

• You and your spouse must be at least 62 years of age.
• You must own and live in your home.
• Available lending amounts are based on your home value, your age, current interest rates and FHA lending limits in your area.  A figure is determined using these factors. 
• You do not have to have any income or a good credit score to qualify for a reverse mortgage.
• You still own your home, and the title of the home is in your name, but you are able to receive cash payments to help maintain your desired lifestyle.
• You do not have to pay back the loan (and interest) until you either no longer own, or live in the home.
• You or your heirs keep any equity leftover after you leave your home and pay back the loan and interest.
• We will assist you to obtain the required qualification certificate from a government-approved counselor.

This is just a brief overview of a reverse mortgage.  Your Senior American Funding agent will be happy to go over all the aspects of the program with you including payment options, interest, fees, counseling and other options available.