Reverse mortgages are a special type of home loan that lets a homeowner convert the equity in his/her home into cash. They can give older Americans greater financial security to supplement social security, meet unexpected medical expenses, make home improvements and more.

Reverse mortgages are loans designed for seniors 62 years or over that enable them to access the equity they’ve earned and turn it into tax free income.* With a reverse mortgage, the payment stream is “reversed.” That is payments are made by the lender to the borrower, rather than monthly repayments by the borrower to the lender. By utilizing these loans and the wealth in their homes, seniors are able to live the lives they deserve – from being able to remain in their homes, fund healthcare and prescription drugs, finance home repairs and renovations, pay for travel and other leisure activities, finance their grandchildren’s education, or simply having the peace of mind of having access to extra cash when needed.

The loan is based on the borrower’s age and the value of their home. The program gives borrowers the amount of their loan as either a line of credit, regular monthly payments or in one lump sum. Best of all, with a reverse mortgage, seniors are able to stay in their home for as long as they wish without having to sell their home or take on a new monthly mortgage payment. No repayment is required during their lifetime or their spouse’s lifetime. Seniors will never, under any circumstances resulting from the reverse mortgage, be forced to leave their home providing they make their real estate property tax and insurance payments and keep the home in acceptable condition.

Also, unlike other retirement tools or conventional loans, there is no income or credit qualification with a reverse mortgage. The loan becomes repayable when the last borrower on title sells the home or permanently moves out. In addition, the repayment amount will not exceed the fair market value of the home.

Currently, there are three reverse mortgage products available.

• Home Equity Conversion (HECM) – A government-insured program, the most popular of the reverse mortgage products. HECM is subject to HUD/FHA lending available.
• Fannie Mae Home Keeper – A government-sponsored program which can be used for home purchase. This program is subject to the Fannie Mae lending limit.
• Cash Account – This program focuses on higher value homes. This product has virtually no maximum lending limit to deliver all the flexibility, leverage and control to secure your financial future.

Proceeds from a reverse mortgage may be received as a lump sum of cash, monthly income, line of credit or a combination of any of these. The amount of the reverse mortgage you are eligible for depends on your age, the type of reverse mortgage chosen, appraised value of the home, the maximum lending limit and current interest rates.

All three reverse mortgage products have numerous built-in consumer protection features, so you can be confident about your decision. Mandatory third-party government-approved counseling and rate caps on all products are consumer protections built into these programs, just to name a few.

The Home Lending Center's Reverse Mortgage product is a federally-insured private loan, and it's a safe plan that can give older Americans greater financial security. Many seniors use it to supplement social security, meet unexpected medical expenses, make home improvements, and more. You can receive free information about reverse mortgages by calling or emailing Scott Nissensohn at THLC toll-free: (866) 594-9400. Since your home is probably your largest single investment, it's smart to know more about reverse mortgages, and decide if one is right for you!

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