REVERSE MORTGAGES
 Program
Information - How does a Reverse Mortgage work?
A reverse mortgage
is a special type of loan that enables seniors to tap into the equity they have in their homes and receive cash proceeds in a
lump sum or monthly payments or both. Unlike traditional equity loans,
no repayment is required until the home is no longer their principal
residence. There are no income or credit requirements to qualify.
The application process is EASY. It’s a great option for
Seniors on a fixed income.
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ELIGIBILITY
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The homeowner must be at least
62 years of age and occupy the property as their principle
residence.
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The home must be free and clear
or have a small mortgage balance that can be paid off
with a reverse mortgage.
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The property must be a single
family or up to a four unit dwelling.
TAX FREE INCOME OPTIONS
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Lump sum advances make cash
immediately available.
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Tenure plans provide fixed
monthly cash advances.
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A line of credit makes
available cash when requested by the borrower.
CLOSING COSTS
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There are fees to obtain a
reverse mortgage. These costs may included an origination fee,
title insurance, appraisal and mortgage insurance. All of
these costs can be financed into the loan for the borrower.
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Typically, the only out of
pocket expense is the appraisal fee.
INTEREST RATE
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Only adjusting interest rate
loans are available. Rates are linked to the one year U.S.
Treasury Security Rate.
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The change in the interest rate
has no effect on the amount or the number of loan advances
that the borrower can receive, but causes the loan balance to
grow at a faster or slower rate.
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HOW MUCH CASH CAN THE HOMEOWNER
RECEIVE? The amount that can be borrowed
is based on a HUD formula that factors in the age of the youngest
homeowner, the interest rate and the appraised value of the home.
Your Southland Funding representative will help
you determine what amount of cash you can receive.
EFFECT ON PUBLIC BENEFITS
Loan proceeds are not considered income and will not affect
Social Security.
SOME BENEFITS
- The homeowner always retains title and
ownership of the home.
- Lump sum cash advances can be used for any
purpose.
- Receive monthly cash payments.
- Tax free income will not effect Social
Security, Medicare, SSI or Medicaid benefits.
LOAN REPAYMENT
There are no monthly mortgage payments during the
life of the reverse mortgage. You own your home and retain title
throughout the life of the loan.
Once you permanently move out of your home or pass
it to your estate or sell, the loan must be repaid in one payment
either from the sale of the home, refinancing or through other
resources. There is no requirement that the property be sold or
refinanced, only that the loan is repaid when the home is no longer
your primary residence. You can never owe more than the
value of your home.
 CALCULATOR:
Use this calculator to estimate how much cash and / or monthly
allotments you could receive. Click
HERE to go to the calculator.
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QUESTIONS AND ANSWERS
Can the lender
take my home away if I out live the loan?
No! Nor is the loan due. You do not need to repay the loan as long
as you or one of the borrowers continue to live in the house and
keep the taxes and insurance current. You will never owe more than
your home's value and you will retain title to your property just
as you always have.
Will I still
have an estate that I can leave to my heirs?
When you sell your home or no
longer use it for your primary residence, you or your estate will
repay the cash you received from the reverse mortgage, plus
interest and other fees to the lender. The remaining equity
in your home, belongs to you or your heirs. You and your heirs
will receive 100% of the remaining equity after the loan is
repaid. None of your
other assets will be affected by HUD's reverse mortgage loan. This
debt will never be passed along to the estate or heirs.
There are lots of reasons to apply for a reverse
mortgage!
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Live comfortably by receiving
monthly cash payments to offset your income and increase your
monthly cash flow.
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Payoff your existing mortgage and have no
Mortgage Payments!
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Get a lump sum of cash for home improvements,
a vacation, heathcare expenses, or any other reason.
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Consolidate your debts and
lower your monthly expenses.
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Relax and enjoy life by
receiving extra cash every month for years - proceeds will not
affect Social Security benefits.
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Qualifying is EASY because
there are no income and credit requirements.
 Imagine
extra cash every month with no mortgage payments!
It is possible with a Reverse
Mortgage and Southland Funding can help you choose the ideal program with
the best terms to meet your needs.
To Learn More - Give us a call and see how we can help
you!
(310) 379-4149
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