| What's a Reverse Mortgage?o A government insured | | | | are deferred until both seniors move out permanently, |
| program that enables senior homeowners to convert | | | | sell the home or pass away. |
| a percentage of the homes equity into cash, while | | | | How much cash can be received?o The amount is |
| retaining ownership. | | | | based on a HUD formula that factors the age of the |
| Who is eligible?o Homeowners who are at least 62 | | | | youngest borrower, interest rate and appraised value. |
| years of age.o Properties include: Single Family Homes, | | | | When is the loan repaid?o The loan is only due when |
| Condos, Town Homes 1 to 4 unit dwellings and | | | | both homeowners pass away, sell the home or |
| Manufactured Homes with approved foundation.o The | | | | choose to vacate the property.o The loan must be |
| home doesn't need to be owned free and clear, but | | | | repaid from the sale of the home or through other |
| must have at least enough equity so that the | | | | resources.o The estate or heirs can keep the property |
| proceeds from the reverse mortgage can pay off the | | | | once the loan is paid. If the home is sold the remaining |
| balance.o No income or good credit is necessary to | | | | equity goes to the estate or heirs.o Reverse |
| qualify for the program. | | | | mortgages are considered a non-recourse loan. The |
| What are some of the benefits?o The title of the | | | | homeowner never guarantees all money owed will be |
| property always remains in the homeowners name, | | | | paid back. If more is owed on the home than what it |
| never changing ownership.o The funds may be used in | | | | can be sold for the government is responsible. |
| any manner the senior wishes with no restrictions.o | | | | What are the cash options?o Cash lump sum.o |
| Income received is tax-free, doesn't affect Social | | | | Monthly installments.o Line of credit that allows you to |
| Security, Medicare or Medicaid benefits.o No monthly | | | | access cash when you need it.o Combination of the |
| payments on any of the used money.o No out of | | | | above.o All options are tax-free. |
| pocket costs to do the program. All fees and interest | | | | |