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Reverse Mortgage Loan

Could a Reverse Mortgage
be a Good Fit for Your
Retirement Needs?

Reverse Mortgage Loan

Buy or Refinance Your Home for Retirement.

Retirement is a time of great change. For most people, it’s an exciting time filled with opportunity and new challenges.

There is also uncertainty as you face the prospects of a long retirement…the biggest concern is outliving your money.

Housing is more than likely one of your largest expenses, and can be your most important asset throughout retirement. Learn how to eliminate* your required mortgage payment.

*Borrower must continue to pay Property Taxes & Homeowners Insurance, and maintain the home.

Key Benefits of Reverse Mortgages

Eliminate Required Mortgage Payments

A Reverse Mortgage is the only home loan that doesn’t require a monthly mortgage payment. Of course, the homeowner must pay taxes, insurance, as well as, maintain the home, and the balance is due once the last remaining borrower leaves the home. More than 40% of people age 62+ still make a house payment…a reverse mortgage eliminates the required monthly payment, and improves cash flow.

Purchase Your Retirement Home

The FHA Insured Home Equity Conversion Mortgage, known as the HECM for Purchase Program, is a reverse mortgage used to buy your dream retirement home, without the required monthly payments. You are always responsible for general maintenance, taxes and insurance. The reverse mortgage allows you to buy the home you really want and need, for the many good years ahead of you!

Withdraw Cash Tax Free* From Your Home

A Home Equity Conversion Mortgage (HECM), is the only FHA insured Reverse Mortgage that converts a portion of a home’s equity into cash, and you can withdraw cash, tax free* to be used for any purpose. The HECM allows homeowners age 62+ to convert housing wealth into cash, while living in the home. *The advertisement does not constitute tax advice. Please consult with a tax advisor regarding your specific situation.

Build a Growing Line of Credit

A Reverse Mortgage Line Of Credit(LOC), is guaranteed to grow (applies to unused funds), and over time can amass a sizable cash nest egg. The LOC can be used for long term care needs or other major expenses in your elder years, at a time when you’ll need it most. The closer to age 62 you set up the reverse mortgage credit line, the more time it has to grow for you.

FAQs on Reverse Mortgages

Does the Lender Take the House When We Die?
No. You own the home and retain title to the property. You can live in the home as long as you want to, or decide to sell it anytime you want.
As with a traditional or “forward mortgage”, with a Reverse Mortgage the lender has a lien on the property and the balance of the loan will be required to be paid.
When is the Loan Balance Required to be Paid Off?

As long as you maintain “qualified”, the loan balance does not become due until the last remaining borrower leaves the home permanently. This generally means when they have vacated the home for one year, or has knowledge they will not be returning to the home.

At this time the lender will begin notification that the loan balance is due and payable, and will inquiry as to the estates plans to settle the balance. On a case by case basis, the lender will allow up to one year for the estate to pay the balance in full.

What Does it Take to Qualify for a Reverse Mortgage?

There are seven eligibility factors that will be considered when qualifying for a revere mortgage, they are;

 

  • At least one Borrower must be 62 years or better
  • Property must be a single family home, a 2-4 unit dwelling, or a FHA-approved condo
  • Must live in the home as the primary residence(live there 6+ months per year) and have significant equity, as determined by the age of the youngest borrower
  • Minimal property and credit qualifications(credit scores are not considered)
  • Can not be delinquent on any Federal debt
  • Must pay property taxes timely and maintain homeowners insurance coverage
  • Must complete HUD approved, reverse mortgage counseling
Will There be an Inheritance Left for My Heirs?

Whatever assets remain in your estate upon your passing may be willed to your heirs. Once the loan balance is paid in full, all remaining home equity will go to your heirs.

The home can be sold for 95% of the appraised value, with the sale proceeds paying off the loan balance. Or should the heirs want to keep the house, they purchase it for the lessor of 95% of the appraised value, or the amount of the loan balance.

What Does the Lender Require of Me to be Qualified?
You must occupy the property as your primary residence and maintain it in reasonably good condition. You also must pay your property taxes, home owners association dues when required, and maintain homeowners insurance coverage.
What Are Some Benefits of a Reverse Mortgage?

There is an enormous list of benefits that can be custom tailored to your personal goals such as;

• By Refinancing your current mortgage, you could eliminate a required monthly mortgage payment, and free up cash flow, of course you must continue paying taxes,  and insurance, as well as, maintaining the home
• You can purchase a new home, more suited to your changing needs in retirement with a 30 to 50% down payment, as determined by the age of the youngest borrower
• Receive tax free* cash from the equity in your home
• Because the loan is FHA insured, you can never owe more on the home than the home is worth**
• Generally will not affect Social Security and Medicare
• Build a growing line of credit, with access to unused funds at any time for any purpose, that is guaranteed to grow (applies to unused funds) and can never be frozen
• You keep ownership and can live in the home until the end of your retirement

*This advertisement does not constitute tax advice. Please consult a tax advisor regarding your specific situation.
**There are some circumstances that will cause the loan to mature and the balance to become due and payable. Borrower is still responsible for paying property taxes and insurance and maintaining the home. Credit subject to age, property and some limited debt qualifications. Program rates. fees terms and conditions are not available in all states and subject to change.

Video Customer Testimonials

“What a Reverse Mortgage Can Do For You”

“The Best Thing for Retirees”

“A Reverse Mortgage Success Story”

“I was paying a mortgage out of a small income and I didn’t really have enough left for all of the utilities and for food so I had help with food each month. It was uncomfortable to accept help from somebody else. When I met Paul, he made me very comfortable. He was very intelligent and told me everything about the company and how I would never lose my home. I’ve been relieved of financial problems and I really have peace of mind because now I can spend my time doing anything I want. I have an emergency fund now that I didn’t have before. I’ve just been extremely pleased and relieved after going to Fairway. Everything was just smooth and professional. Paul Donohue & Ayla were just a great help. Without them I wouldn’t have been able to see it through. I probably would’ve lost faith in it.”

Julie Thompson

Reverse Mortgage Client, Fairway Mortgage of Asheville

Asheville Team Spotlight

Paul Donohue

Reverse Mortgage Specialist
paul.donohue@fairwaymc.com
866-940-9581
NMLS # 68305

Local Asheville team member, Paul Donohue specializes in reverse mortgages. Paul’s true passion is sitting down with people age 62+ to sort out whether a reverse mortgage, is a fit for their needs. Read more about Paul here.

Ayla Blankenship

Reverse Loan Officer Assistant
ayla.blankenship@fairwaymc.com
828-350-8886 ext. 108

Ayla Blankenship began her career in finance as a bank teller in a national bank. She eventually worked her way up to personal banker and spent several years developing her skills and her knowledge of the financial world.

When Ayla joined the Fairway Asheville Team she was looking for a more meaningful way to apply her financial knowledge and her passion for making a difference in the lives of the people she serves. Ayla found her opportunity working with the Fairway Asheville Team by serving the people in the 62+ community. Fairway Asheville is her home and helping Seniors retire and live with peace of mind is now her life’s work.

Call Us Today 866-940-9581

From the Learning Center

Reverse Mortgages for Retirement Cash Flow

Reverse Mortgages for Retirement Cash Flow

The original concept of the Reverse Mortgage has evolved over the last 50 years which was: “to create a mortgage loan product that allows seniors to tap into a portion of their home equity while they live...

read more

Reverse Mortgage Videos

Paul Donohue addresses two common challenges of buying for retirement, in the Asheville Market; Affordability and Limited Inventory. Paul talks about “sticker shock”, and how a Reverse Mortgage expands retirement buying power, to help Realtors put buyers into their dream retirement home.

Paul Donohue, Director of Reverse Mortgages at Fairway Independent Mortgage – The Asheville Team, interviews Wade D. Pfau, Ph.D., CFA, Professor of Retirement Income in the new Ph.D. program for Financial and Retirement Planning at The American College in Bryn Mawr, PA.
Paul Donohue’s take on tackling one of retirement’s biggest questions: Should you pay cash for your retirement home? At a minimum, Paul argues that those over 62 should make themselves aware of how a reverse mortgage can preserve cash, mitigate Sequence of Returns Risk and help extend the life of your portfolio investments.

Call Us Today 866-940-9581

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The Asheville Team

NMLS# 113607
paul.donohue@fairwaymc.com
O. 866-940-9581
C. 336-254-3027
149 S Lexington Ave
Asheville, NC 28801
FIMC #2289