Buy or Refinance Your Home for Retirement.
Asheville Team Spotlight
Reverse Mortgage, Retirement Specialist
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
From the Learning Center
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 could benefit them when doing retirement income planning.
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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 HECM for Purchase (H4P), is a type of 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!
Provide Cash, Tax-Free* From Your Home
A Home Equity Conversion Mortgage (HECM), is a reverse mortgage that converts your home equity into cash, which can be used at any time for any purpose, tax free. This FHA insured loan allows people 62+, to turn housing wealth into cash, while living in the home. *This advertisement does not constitute tax advice. Please consult 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.
From the Learning Center
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What The Heck’s a HECM?Pronounced Heck-Em, a Home Equity Conversion Mortgage is a type of Reverse Mortgage loan that is insured through the Federal Housing Administration (FHA) and is used to covert your home’s equity into tax-free* cash, without having to make any...
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Reverse Mortgage Videos
FAQs on Reverse Mortgages
Does the Lender Take the House When We Die?
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?
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?
- 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?
The home can be sold with the proceeds paying the loan balance, or should your heirs want to keep your home, they may purchase it for 95% of the current appraised value.
What Does the Lender Require of Me to be Qualified?
What Are Some Benefits of a Reverse Mortgage?
• 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 70% 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
• It is a safe and secure FHA government insured loan
*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.