What is a Reverse Mortgage?
If you are 62 years or older and have significant equity in your home, you may be eligible for a Home Equity Conversion Mortgage (HECM) loan, commonly known as a Reverse Mortgage.  

A HECM loan is insured by FHA and allows seniors to access a portion of the equity to be used however they choose, from paying off medical bills to supplementing their monthly income.  How To Buy A Home With No Mortgage Payment For Life


A HECM can also be used to purchase new home.   Loan-to-value percentages are the same as for regular HECMs. The borrower can use the HECM to pay for part of the purchase, and then would have to bring a down payment equal to the remaining cost of the home.  
The loan generally does not have to be repaid until the last surviving homeowner permanently moves out of the home or passes away.  At that point, you or your estate must repay all the loan advances you received (including any used to finance loan costs or to pay off prior debt), plus all the interest. The remaining equity belongs to you or your estate.  

In addition to being at least 62 years old, some key requirements include:
  • Owning the property outright, or at least having paid off a considerable amount of your mortgage
  • Occupying the home as your primary residence
  • Not being delinquent on any federal debt
  • Attending a session with a HUD-approved HECM counselor
With a reverse mortgage, you remain the owner of your home. So you are still responsible for paying your property taxes, homeowner insurance and for making property repairs.

I'm Ready To Start the process, What's Next?
When you work with The Richard Woodward Mortgage Team, you can be assured that we will personally walk you though every step of the reverse mortgage process. Your questions will be answered honestly and directly in plain English the anyone can understand. 

The Learning Process – Feel free to ask as many questions as you like. We want you to be completely comfortable with us and with the reverse mortgage program. We can prepare a scenario tailored to your specific needs and even show you options for how to take the funds based on your needs and goals.

  • Counseling – Prior to obtaining a reverse mortgage, you will be required to participate in an informative counseling session. The counseling will be done by a HUD-approved counseling agency. The counselor will go over the features and requirements of a reverse mortgage, answer any questions you may have, and discuss alternatives to a reverse mortgage with you. Upon satisfactory completion, you will be issued a certificate and we can move forward with the next step.
  • Application and Appraisal – After counseling, you are ready to begin the application process. You will fill out the necessary forms and pay for an appraisal of your home. Relax, we’ll take it from here. Visit our Mckinney Mortgage office and a face to face talk or call for an over the phone application.
  • Processing and Underwriting- Behind the scenes, all the components of the file (appraisal, title work, etc) are assembled and the underwriter reviews the file for final approval. This process takes from 2 weeks to 6 weeks depending on how complicated your application is.
  • Closing – Once the final approval is issued, you are ready to close. We will schedule a time for you to complete the final paperwork. Once all papers are signed and the mandatory three day right of rescission has passed, you receive your lump sum, access to your line of credit, or a schedule of monthly payments.
Buy a Home Without Monthly Mortgage Payments

If you are 62 years or older, the Home Equity Conversion Mortgage (HECM) for Purchase Loan can help you buy your next home without required monthly mortgage payments. The HECM for Purchase is a Federal Housing Administration (FHA) insured home loan that allows seniors to use the equity from the sale of a previous residence to buy their next primary home in one transaction.

Even if you live in your home throughout your golden years and not matter what happens to the value of your home, you only make the initial investment in the down payment on the home.

Customer benefits include:
• Eliminates monthly mortgage payments
• Increases your purchase power
• Preserves your cash

Why Consider A Reverse Mortgage To Purchase A Home.

Many home buyers use the HECM for Purchase Loan to:
• Down size to a smaller, lower maintenance home
• Buy a home closer to family or friends
• Lower their cost of living during retirement
• Enjoy carefree living in a senior housing community


Since monthly mortgage payments are not required, a HECM for Purchase Loan may help preserve your hard-earned savings and improve cash flow while reducing your tax burden. You will continue to own and maintain the title of your home for as long as the property remains your primary residence and you continue to meet the obligations of the loan.

Here's what to do now.

Contact us for a no–cost or obligation consultation. We would be happy to discuss the Reverse Mortgage program with you and assist you with determining if it is the appropriate solution for your personal situation. You can contact Richard Woodward at (214) 945-1066 or Click here to email me. 

Feel free to use our Reverse Mortgage calculator below.

 

Reverse mortgage calculation provided by ReverseVision