What exactly is a reverse mortgage? How do I qualify for one? If I get approved, how will I receive my funds?
These are just some of the many questions that people have about reverse mortgages. While the concept of a reverse mortgage is nothing new, this type of loan product remains unfamiliar to the majority of the population–including most homeowners.
And with all the technical terms being thrown around–plus the long list of ifs, buts, hows, and whys–it can be easy to get lost in the confusion. That is the last thing we want. So, to make sure that each individual receives the right information about reverse mortgages, our reverse mortgage specialists here at South River Mortgage are always happy to provide consultations.
When you give us a call, here are some of the things you can learn:
Reverse Mortgage Options
There are different types of reverse mortgage loans. The most common is the Home Equity Conversion Mortgage or HECM; a loan backed by the Federal Housing Administration (FHA). In addition, we offer HomeForLife which allows you to borrow beyond the loan limits of HECM.
Each of these options has unique characteristics, qualifications, and pros and cons. We will walk you through each reverse mortgage option carefully to help you determine which loan best fits your needs. At the same time, we will help you get familiar with the different terminologies related to reverse mortgages to minimize confusion during the loan process.
Want more program details? Download a FREE reverse mortgage toolkit today!
Related: How to Choose a Reverse Mortgage Program
Eligibility
In order to qualify for a reverse mortgage, you must satisfy a set of requirements, depending on the type of loan you are applying for. In general, you must be at least 62 or older to qualify for a reverse mortgage. However, HomeForLife has eligibility requirements as low as 55 depending on your state. You must also have substantial equity in your home; the required percentage can vary depending on the loan.
Other requirements may include undergoing reverse mortgage counseling and passing a financial assessment. The list of requirements can differ from loan to loan and lender to lender. Naturally, it is not always easy to determine if you are eligible for a reverse mortgage or not. Our reverse mortgage specialists will help assess your eligibility and guide you through the steps afterward.
Loan Application Process
Similar to a traditional mortgage, applying for a reverse mortgage requires thought and care. This is why it is so important to choose the right lender to guide you step by step. One of the first steps of completing your application is completing counseling. Read more about reverse mortgage counseling.
Our experts will help you understand the application process until it’s crystal clear. We know that applying for a loan is not anyone’s favorite activity, but we have made it one of our goals to educate clients about the process before they even begin. This way, you can commit to a reverse mortgage with full confidence and all the information you need to go through the application smoothly.
Payment Options
If you are approved for a reverse mortgage, you can receive your loan proceeds in several ways. You can choose from receiving your funds via a lump sum, a line of credit, or monthly payments. Our reverse mortgage specialists will explain each method so that you can choose the most suitable one for you.
Reverse Mortgage Costs
Reverse mortgage costs should never come as a surprise. By speaking with one of our loan experts, you can find out what costs are associated with the decision.
Get a Free Consultation With a South River Mortgage Expert
At South River Mortgage, our mission is to help homeowners secure the retirement they deserve. We believe that education is key to helping seniors make the best decisions for themselves when applying for a reverse mortgage, which is why our consultations are free.
To learn more about reverse mortgages and how you can apply for one, get started or call us at (844) 230-6679 Our specialists are always happy to assist.