Who Can Qualify:

• You must be at least 62 years old and own your own home or condominium in order to qualify for a reverse mortgage.
• There are no income or credit requirements to qualify.
• You may be eligible for a reverse mortgage even if you still owe money on your first mortgage.

3 Types of Reverse Mortgages:
There are three different reverse mortgage loan products available:

• FHA HECM (Home Equity Conversion Mortgage)
• Fannie Mae HomeKeeper
• Financial Freedom Cash Account

Another benefit of reverse mortgages is that they are "non recourse" which means that no matter how high the loan balance grows, the borrower or their heirs never owe more than the home's market value.

Proceeds of The Reverse Mortgage:
The proceeds from a reverse mortgage can be used for anything:

• Daily living expenses
• Home repairs and home improvements
• Medical bills and prescription drugs; long term health care
• Pay-off of existing debts
• Education or travel
• Retirement and estate tax planning
• Other needs you may have

The proceeds from a reverse mortgage are available as a lump sum, fixed monthly payments for as long as you live in the property, a line of credit; or a combination of these options. Click Here for more information.

How Much Can I Receive?
The amount of benefit you will qualify for will depend on:

• Your age at the time you apply for the loan
• Type of reverse mortgage you choose
• Value of your home
• Current interest rates
• For some products, the location of your home

As a general rule, the older you are and the greater your equity, the larger the reverse mortgage benefit will be.

Costs Of A Reverse Mortgage:
The costs associated with getting a reverse mortgage are similar to those with a conventional mortgage:

• Origination fee
• Appraisal and inspection fees
• Title policy and mortgage insurance
• Other normal closing costs

All of these costs can be financed as part of the reverse mortgage.
A Mitchell Hughes representative will be happy to provide a good faith estimate of the costs involved.

• The origination fee covers the reverse mortgage operating expenses of the lender. These fees are similar for both the HECM and the Fannie Mae HomeKeeper programs. With HECM, the fee is equal to $2,000 or 2 percent of the maximum claim amount, whichever is greater. With HomeKeeper, the amount charged may not exceed 2 percent of the value of the home up to the Fannie Mae limit of $333,700.
  
• An appraisal is needed for every mortgage, whether it is one of the programs listed here, or a standard purchase or refinance. An appraisal lets the lender assess the fair market value of the home and ensures that it is in good structural condition and meets safety code requirements. If necessary, the appraiser will ask that repairs be made, but this cost can be incorporated into the loan.
  
• Closing costs are the costs to a borrower to obtain a mortgage loan. These costs may include an origination fee, title insurance, appraisal, survey, attorney fees, pest inspection, well inspection, escrow fees, flood certification, and credit report.
  
• Under the FHA Home Equity Conversion Mortgage program, paying a mortgage insurance premium is required. This protects both homeowner and lender from losses when the loan comes due. The premium is 2 percent of the home value, or maximum claim, whichever is less, plus an annual premium equal to 0.5 of the loan balance thereafter.
  
• The Servicing Fee is a small fee charged to the loan balance on a monthly basis. It covers the cost of record-keeping, payment processing, and other administrative tasks associated with servicing the loan. Depending upon the program selected, the monthly servicing fee ranges from $30 - $35 per month.

Once you understand what a reverse mortgage is and how it works, please proceed to our program options section.

Where Do I Begin?

For additional information or to discuss your personal situation, please contact us at 800-965-0955 or email us at info@mitchellhughes.com.