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.

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

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.

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.