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What is owed when a reverse mortgage is paid?

  • The principle the was used until the last borrower perminently leaves the home or dies

  • The interest that accrued during the same term

  • The closing costs inccured at the time of closing

 

THIS IS A NON-RECOURSE LOAN AND YOU OR YOUR HEIRS

WILL NEVER OWE MORE THAN THE HOME IS WORTH

 

How is the loan amount determined?   

  • The age of the youngest borrower  ( the older you are, more of the equity will be available)

  • The appraised value of your home at the time of the application

  • Current interest rates  (most programs are adjustable rate)

  • The program you select (adjustable or fixed rate product)

What are allowable property types?

  • Single family homes

  • Two-four unit buildings (one must be owner occupied)

  • Condominiums  (must be FHA approved communities)

  • Manufactured homes  (located on your own property)

All Reverse Mortgage loans are on owner occupied primary residences

When is the loan repaid?

  • When the last borrower passes away or is no longer able to remain in the home

  • When the home is no longer the borrower's primary residence

  • When the home is sold or the borrower transfers the title to someone else

  • When taxes and insurance on the property are not maintained as agreed

  • If the property falls into disrepair without corrective action by the borrower

Who owns the home?  As a conventional mortgage, you own the home and you pledge the home as collateral.  Even if, in the future the loan exceeds the value of your home, the reverse mortgage continues - thanks to the federal insurance.  The line of credit will still be available and any monthly disbursements you may have set up will continue.

Frequently Asked Questions

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Disclaimer: No statement on this site is a commitment to make a loan. Loans are subject to borrower qualifications, including income, property evaluation, sufficient equity in the home to meet Loan-to-Value requirements, and final credit approval. Approvals are subject to underwriting guidelines, interest rates, and program guidelines and are subject to change without notice based on applicant’s eligibility and market conditions. Refinancing an existing loan may result in total finance charges being higher over the life of a loan. Reduction in payments may reflect a longer loan term. Terms of any loan may be subject to payment of points and fees by the applicant. Reverse Mortgage Borrowers must be age 62 or over and the home must be their primary residence. Homeowners must complete counseling with a government-certified counselor before applying. Homeowners must pay property taxes, insurance, and homeowner’s association dues. Consult a tax professional for tax consequences. A reverse mortgage is a loan and must be repaid. Loan amount based on equity in your home. Payout available in lump sum or in regular scheduled payments. Proceeds will not affect Social Security or Medicare Benefits. There’s no need to repay the loan as long as you continue to live in the house and maintain the property to FHA standards. This is not a commitment to make a loan. Loans are subject to borrower and property qualifications. Interest rates and program guidelines are subject to change without notice. AccessReverse is an Equal Opportunity Lender. NMLS#4566


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