Reverse Mortgages

Reverse Mortgages Unlike a traditional “forward” mortgage that you pay back in monthly installments a reverse mortgage actually pays you. This payment can be in a lump sum or in regular monthly payments to help supplement your income. Trojan Financial solutions ensures that you get your payments in intervals that are customized to best benefit you and your lifestyle.

As long as your home is your principal place of residence and you continue to maintain your property, pay your property taxes and hazard insurance no repayment is required. You pay the money borrowed plus interest in the event that you sell, permanently move out of your home or pass away. Upon your passing your estate will be settled in the traditional manner, the property will be passed on to the heirs, and they can refinance out of the reverse mortgage. If they decide not to reside in the property, they can sell the unit, pay off the reverse mortgage, and keep the balance of the monies of the estate. However, if the amount borrowed exceeds the value of your home your heirs will not be responsible for the difference. The amount due is always the lesser of your loan balance or the market value of your home. Any proceeds in excess of what you owe will belong to your estate and can be passed down to your heirs. Your heirs will have one year, from the passing of the note holder to settle the mortgage.

Simply put, if you are 62 or older, own your home outright or have minimal outstanding on your current mortgage you may want to consider the benefit of a reverse mortgage. Contact one of knowledgeable mortgage advisors to find out if a Reverse Mortgage is an option for you.

Requirement to Qualify

To qualify for a reverse mortgage the borrower must be at least 62 years of age. There are no minimum income or credit requirements. For most reverse mortgages, the money can be used for any purpose; however, the borrower must pay off any existing mortgage(s) with the proceeds from the reverse mortgage which may require the contribution of additional personal funds. Some types of structures do not qualify, while other may have special requirements. Before borrowing, applicants must seek third party financial counseling session with a Department of Housing and Urban Development (HUD) approved counselor. This counseling session is a safeguard for the borrower and his/her family to make sure the borrower completely understands what a reverse mortgage is and how one is obtained. The current lending limit (the maximum the home can be appraised for, no matter how much it’s worth) is $625,500.