What Is a Reverse Mortgage?
A reverse mortgage allows you to borrow against the equity you’ve established in your home. To be eligible, you must be age 62 or older and own your home free and clear, or have a remaining mortgage balance that can be paid off by the reverse mortgage. You’ll want to consult a tax advisor to confirm this, but in most cases, a reverse mortgage gives you access to tax-free funds. Instead of making payments, you can choose to receive them, thus the “reverse.” You can also now purchase a home with a Reverse Mortgage and make no payments as long as you live in the home, pay your property taxes and insurance, and maintain proper upkeep of the property. Ask your Reverse Mortgage Specialist for more information.
Why Get a Reverse Mortgage?
There are no restrictions on how you may use proceeds received through a reverse mortgage. You can direct the funds toward a variety of purposes, including:
- Supplementing retirement income
- Planning for long-term care needs
- Remodeling or repairing your home
- Covering health care expenses
- Paying property taxes
- Growing your investment portfolio
- Even to purchase a second or vacation home
- Reducing high-interest debt
Reverse Mortgage Eligibility
Reverse mortgage eligibility requirements are quite simple. There are no income, employment or credit qualifying restrictions. All homeowners must be age 62 or older and occupy the property as their principal residence. The home must be owned free and clear or have a remaining mortgage balance that can be paid off by the reverse mortgage. The property must be a single-family or a one-to-four unit, owner-occupied dwelling. Townhomes, detached homes, condominium units, planned unit developments (PUDs), and some manufactured homes are eligible. The home must meet Department of Housing and Urban Development (HUD) minimum property standards. In some cases, home repairs can be made after a reverse mortgage closing.
Contact us for more information, and to see if a reverse mortgage is the right option for you. One of our loan officers can answer your questions and see if you qualify.
- We are very pleased with the entire process. American Family Funding, and your entire staff, has been very helpful and courteous. We are very happy that we decided to refinance with you and your company. Thanks for the great service. It is truly appreciated.Bob
We are very pleased with the service we received from Fred Arnold and Tara. They were diligent in completing our refinance when previous efforts with a big bank left us very disappointed. We can't recommend the team at American Family Funding enough!
- Fred Kreger was very prompt and courteous while walking us through the process. I've never had a mortgage before so I felt like I had a million questions.Julie
- Their team went above and beyond by providing ongoing communication.Andrew
- The first time my wife and I understood and felt like we would be able to be approved for a home loan was when we were introduced to Vytas at American Family Funding. He not only explained the process clearly but was available and welcomed any of our questions and concerns. The team at American Family Funding went above and beyond to make the dream of becoming first-time homeowners for my family a reality.
- Fernando and his team have been great. This is the second time that we have done business together and I am very satisfied. I would definitely recommend him to anybody I know that is looking for a mortgage.Anthony