Reverse Loan Experience
Most people have heard about all of the new Government lending programs, but are not familiar with their reverse mortgage loan. These insured Government HECM loans (Home Equity Conversion Mortgage) are granted under the terms of the National Housing Act. They are designed to help senior homeowners, 62 years of age or older, use the equity they have in their homes, to remain in their homes "payment free".
In other words, these programs allow you, the borrower, to continue to live in your lovely homes, without ever worrying about making another mortgage payment and actually receiving money from the bank! For those of you who already own your homes free and clear, it is a way to convert that equity into either a lump sum payment or a revenue stream to start enjoying your senior years with some financial freedom.
A few simple rules that apply to a reverse mortgage loan.
The borrower must:
- Be 62 years of age or older
- Occupy the subject property as their primary residence
- Have no mortgage or a low mortgage balance on their principal property
- Receive Reverse Mortgage counseling from an approved counselor.
The amount of equity that can be converted to cash, depends on a few factors; the age of the borrower, the value of the property relative to the outstanding principal balance on any existing mortgage (this is the equity you have in your home).
We will help you determine the type of loan that best fits your needs.
Below is a list of some commonly asked questions and answers to help you further understand exactly what a reverse mortgage loan is.
Why a Happy Reverse loan?
How is this Program "safe" for Senior Homeowners?
No matter what happens in the economy, how much money you receive, or how long you live in your home, you will never be required to make a mortgage payment. In addition, no matter what happens to your lender or your home's value you have guaranteed access to your money.
Who owns my home if I take a Reverse Mortgage?
You own your home. However, you pledge your home as collateral.
What happens if, in the future, the loan exceeds the Value of the Home?
Your Reverse Mortgage will continue – thanks to the Federal insurance. The line of credit will still be available and monthly disbursements you may have set up,will still be sent to you.
How are Reverse Mortgages different today?
Today's reverse mortgages are highly regulated by State and Federal laws to make them safe and protect you. Among others, the following regulations apply:
- You retain title of the home.
- No equity share is allowed, meaning the lender does not slowly take over your home.
- Fees and costs are federally regulated.
- How does a Reverse Mortgage compare to a Conventional Mortgage?
In a conventional forward mortgage, you make monthly payments to the bank eventually paying off the mortgage over time. With a reverse mortgage you receive cash from a lender, as a lump sum upfront, as monthly installments, or as a line of credit that grows over time. As long as you live in your home you never have to pay off a single dollar of the loan.
What restrictions apply to the cash I receive from a Reverse Mortgage?
When you no longer live in your home or when you pass away, the reverse mortgage becomes due. You or your heirs have two options:
- Pay off the reverse mortgage including the accrued interest and retain ownership.
- Give up ownership of the home and receive the difference between the net sales proceeds and the loan balance. You will not be liable for any shortfall, if the sales proceeds do not cover the loan.
What are my obligations under a Reverse Mortgage?
With a Reverse Mortgage you retain title to your home. This means that you also have all your obligations as a home owner. You are responsible for home owner taxes and insurances.
What you can do with a Happy Reverse loan is endless.
- Maybe you would like to get a lump sum upfront to see your grand children attend college, help your children through some tough financial times.
- Maybe you would like to travel, but just do not have the cash to do it, because of those nagging monthly mortgage payments.
- Maybe you are just plain "cash poor" and want to start enjoying your senior years.
- Maybe you want some cash to do some renovations in your home.
- Maybe you are just looking for some financial security knowing you will have a consistent revenue stream to supplement social security payments.
Feel confident, WCS Funding Group has a very qualified team of specialists to walk you through your transaction. You will not only have an exceptionally trained Reverse Mortgage originator and processing staff, but you will have a specially trained appraiser. Together they will walk you through every detail of the origination process.
So SAY YES - call us today and let us show you how to turn your equity into CASH and put some cash flow security into your life!
Reverse Mortgage Loan Availability
Reverse Mortgage Loans are available in Maryland, Baltimore, Virginia, Washington DC, Richmond and Annapolis.
