Questions

How can I qualify?
Qualifying is easy. You need to be 62 or older and have equity in a home you own. Income is not a requirement. You can even pay off your current mortgage with a reverse mortgage. Bad credit is even accepted as long as the government has no current liens on your home.

What can I use the money for?
The money from your reverse mortgage can be used for anything, there are no requirements or restrictions on what you do with it. Here are some of the things our clients have done with the proceeds of their reverse mortgages:

• Paying for living expenses, including bills
• Traveling
• Paying off debts, including credit cards, RV's and vehicles
• Current health care or long-term care and prescriptions
• Education and community classes
• Home repairs and remodeling
• Hobbies
• Starting a part-time business
• Easing the financial burden on your children

Can I lose my home?
This program is regulated by the Federal Housing Administration and certain safeguards have been built in to protect homeowners. By law, you can't be forced to move or sell your home. You will also maintain the title to your home. No payments will be due on the reverse mortgage until you no longer live in your home.

If I don't make monthly payments, how do I pay the reverse mortgage back?
Because this is not a home equity loan, your loan will be paid back when you move out of your home, sell it, or pass away.

What if I want to leave my home to my family?
You can still leave your home to a family member or anyone else you choose. The recipient of the home can pay off the reverse mortgage in any of the following ways: Sell the house, refinance the debt, or use other funds to pay off the mortgage.

How much money can I get?
The amount depends on your age and the appraised value of your home and property.

What do financial experts say about reverse mortgages?
Obtaining a reverse mortgage has been suggested as a smart way to secure your financial future during retirement by many senior advocates, published reports, and financial counselors.

Are there any costs involved with obtaining a reverse mortgage?
There are no out-of-pocket costs involved in a reverse mortgage. Closing and other costs can be financed or paid with money generated by the reverse mortgage.

Will I have to pay taxes on the money I get from the reverse mortgage?
You will be responsible for property taxes, homeowner's insurance, and home upkeep and maintenance. The IRS generally doesn't consider proceeds from a reverse mortgage taxable income but you should consult a tax professional about your specific situation.

Will this loan affect my government benefits?
Reverse mortgage payments do not affect Social Security of Medicare benefits because they are not based on assets of the recipient. Supplemental Security Income recipients may be affected because beneficiaries are required to keep their liquid assets under certain limits. If you do not spend your reverse mortgage earnings in the month you receive them, the funds may be considered part of your resources and could affect your SSI eligibility. Regulations vary for state-administered programs such as Medicaid, Aid for Dependent Children (AFDC), and food stamps so we suggest you consult a benefits specialist with your local Area Agency on Aging or the local office of any program you receive to determine how a reverse mortgage could affect them.

Why can't I have a fixed interest rate?
Lenders are agreeing to lend money without a clear picture on when they will be repaid. It could be 10, 20 or 30 years or any other amount of time, and this makes it impossible for them to do it under a fixed rate because they can not predict the future interest rates.