- Available for individuals 62 years old and older
- No income or credit qualification
- No monthly payments are required
- Delivers tax free monthly income (consult your Tax Advisor)
- Allows homeowner to live in their home
- Title to the home remains in the homeowners name
- The customer can now also use a Reverse Mortgage to purchase their new home.
The number of Reverse Mortgage loans made throughout Connecticut and the United States is increasing at a dramatic rate. The reason for this is more and more seniors and their families are educating themselves about the benefits of a Reverse Mortgage and deciding that it is the best solution for them. The question you may be asking yourself is "Is a Reverse Mortgage right for me?" or "Is a Reverse Mortgage right for my parents or older relatives?" In the Tri-state area, Contour Mortgage is the best source for information on Reverse Mortgages.
Before you can answer either of those questions, you need to get all of the facts and, for that, you've come to the right place! By following the links above, you will be on your way to learning how a Reverse Mortgage might benefit you or the senior adult in your life. When you are ready to apply, or even if you just have more questions you can call Contour Mortgage.
Questions? View the Frequently Asked Questions section, call for more information, or complete the get Started form to begin and have a qualified Reverse Mortgage Specialist call you with specific answers to your specific situation.
- How can this program benefit me?
-
- An FHA Reverse Mortgage will eliminate your monthly mortgage payments for as long as you live in your home.
- You can draw tax-free money from your home for any use without having to worry about paying it back while you still live in the home. Click here to see if your Reverse Mortgage will give you this option. You can use this money to pay off debt, supplement your monthly income, take a vacation, or even buy a new car. This tax-free money is yours to use any way you want.
- The security of a mortgage that is insured by the Federal Housing Administration with built-in protection for seniors.
- If I get a reverse mortgage, will I still own my home?
-
Yes, absolutely! The reverse mortgage works just like a regular mortgage except that you don’t make monthly mortgage payments. You still retain ownership and title to your home.
- What are the qualifications? What if I have poor credit or income?
-
It’s easy to qualify for an FHA Reverse Mortgage: simply be a homeowner age 62 or more. Your income does NOT matter. Neither your credit history nor your credit score matters. It’s all about your age, your property’s value and the equity you have in it. Qualifying properties include single family homes, duplexes, condominiums or townhomes, some multi-unit properties, and manufactured homes (built before 1976 & converted to Real Property). Legacy Home Financing will be able to tell you if your home qualifies.
- Can I get an FHA Reverse Mortgage if I don’t own my home outright?
-
Yes. If you have sufficient equity an FHA Reverse Mortgage will pay off your current mortgage and may offer you additional money as well.
- How much does an FHA Reverse Mortgage cost?
-
While lender fees and costs are similar to a regular mortgage, you’ll notice that the overall costs are higher. This is mostly due to the FHA Mortgage Insurance Premium paid in order to get your Reverse Mortgage. This money insures your loan and pays for this loan program to exist.
- What is the interest rate on an FHA Reverse Mortgage?
-
You have two options, a Fixed Rate Reverse Mortgage or an adjustable interest rate based on a financial index plus a fixed margin. Since this is a government insured loan program there is less risk involved to the bank so rates are generally less than non-insured loans. The Fixed Rate is decided by the prevailing market conditions while the adjustable rate use the LIBOR (London InterBank Over-counter Rate) as the index.
- How much money could I be approved for?
-
The amount of money available to you depends on your age, the value of your home and the product you select.
- How do I get my money from a Reverse Mortgage?
-
Reverse Mortgages allow you to tap the equity in your home without making a monthly mortgage payment. Depending on your age, home value and equity, you may be able to access that equity in the form of cash. This can be delivered to you in one of four ways:
- Lump sum at closing. Cash to you after the loan closes.
- As a monthly payment to you for either a set period of time or lifetime, depending on your needs.
- As a Line of Credit where you can draw money as you need it in an amount you control.
- Any combination of the above.
Our Loan Officers can help you explore the options available to you and customize your loan to best serve your needs.
- How does a Reverse Mortgage get paid back?
-
You or your estate will pay the money back plus interest when you permanently move out of your home. If you sell your home during your lifetime you’ll be paying back your Reverse Mortgage at the sale. If you live there until you pass away, that’s when it needs to be paid back.
- Do I have to pay any monthly mortgage payments on my FHA Reverse Mortgage?
-
No. Just pay your homeowner’s insurance, property tax and your Homeowner’s Association Fees (if any). FHA Reverse Mortgages do have a monthly service fee but it’s added on to your loan balance—you don’t have to pay it out of pocket.
- Can I make a payment on my FHA Reverse Mortgage?
-
Yes you can. You can pay as much as you want at any time you want without penalty. There are no prepayment penalties of any kind. The payment will directly reduce the amount of money you owe on your Reverse Mortgage, and may also affect the amount of money you can draw on a Line of Credit.
- Can I buy a Home with a Reverse Mortgage?
-
In addition to using a reverse mortgage on your current home, you also have the option of using a reverse mortgage to finance the purchase of a new home. Please call 1-800-662-1211 and talk to a Loan Officer to help you evaluate this important move.
- What happens if my wife or husband passes away before I do?
-
The Reverse Mortgage works in the same as a regular mortgage when you pass away. You or your estate / heirs always own the equity in your property. When the last borrower on the FHA Reverse Mortgage passes away the loan comes due, just like with a regular mortgage. The heirs have an initial 6-month period to pay back the loan. They can do this by either getting their own mortgage to keep the property, or selling the property. If they sell the property, the loan is paid off with the sale proceeds and the equity (left-over money) goes to your heirs. The time to pay back the Reverse Mortgage on the property may be increased by applying for extensions.
- If my FHA Reverse Mortgage gets too big will I have to pay it back? Will I lose my home? Will my family / heirs have to pay anything if the mortgage is more than the house is worth?
-
An FHA Reverse Mortgage stays in force so long as either one of the borrowers still lives in the home. If your husband or wife passes away during the lifetime of the loan NOTHING HAPPENS. If you’re receiving monthly payments they don’t stop. If you have a Line of Credit it’s still there. Many Seniors get an FHA Reverse Mortgage in order to provide security for their spouse by eliminating their house payments in the event they pass away before them. Please keep in mind that this only applies to borrowers on the loan who are on title, and all must be at least 62 years of age.
- Can I have my home in a Trust and still get an FHA Reverse Mortgage?
-
No to all of these. As long as you’re living in the home no mortgage payment is due—even if the Reverse Mortgage balance is high or you live into your 80s, 90s or even 100 and above. An FHA Reverse Mortgage is what’s called a “non-recourse” loan, meaning that if the loan payoff is more than the home value at the time the borrower passes away, the loan company is paid back by the FHA. Your heirs can choose to sell the home and they won’t have to pay any excess money beyond the value of the property.
- Can I have my home in a Trust and still get an FHA Reverse Mortgage?
-
Yes, there is. The FHA actually requires counseling before we can process an FHA Reverse Mortgage loan application. We will provide you with a list of HUD (Department of Housing & Urban Development) certified counselors available for in-person and phone counseling. This is an excellent way to learn more about Reverse Mortgages.
- Is there some kind of counseling I can get to find out more about Reverse Mortgages?
-
Yes, there is. The FHA actually requires counseling before we can process an FHA Reverse Mortgage loan application. We will provide you with a list of HUD (Department of Housing & Urban Development) certified counselors available for in-person and phone counseling. This is an excellent way to learn more about Reverse Mortgages.
- Can I sell my home later if I get an FHA Reverse Mortgage?
-
Yes you can sell your home at any time without penalty. If you do this during your lifetime you’ll be paying back the money borrowed to start the loan plus the interest and fees added during the time you’ve had the loan. Leftover money (your equity) goes to you. No special permission or government approval is required to sell your home when you have an FHA Reverse Mortgage.
- Will I be taxed on money I receive from an FHA Reverse Mortgage? Can I deduct the interest paid on an FHA Reverse Mortgage?
-
Money from a Reverse Mortgage is borrowed, thus it is not taxable. Do note that if you deposit that money in an account where you’re paid interest, you can be taxed on that interest income. Generally speaking, interest added to an FHA Reverse Mortgage cannot be deducted until you pay off the mortgage. You may wish to consult with an accountant for specifics on how an FHA Reverse Mortgage would affect your taxes if you currently have a traditional mortgage and deduct the mortgage interest you pay.
- Will an FHA Reverse Mortgage affect my qualifications for income-based programs, Social Security, Medicare or Pension?
-
Since Reverse Mortgages are borrowed money they generally don’t affect these benefits. Senior programs vary state by state so you should consult your contact at any program you’re currently in to check on your eligibility.
- What about the housing market these days?
-
This is the perfect time to get a reverse mortgage. By doing your reverse mortgage right now, we establish the current value of your home and your legacy is safe.
- Why should I choose Legacy Home Financing?
-
You want someone experienced that you can trust. Legacy’s founder has over 11 years of experience directly with Reverse Mortgages. Legacy is an FHA approved Loan Correspondent with a direct connection to all of the FHA Reverse Mortgage products and programs available. This means we will get you the best possible FHA Reverse Mortgage program at a discounted cost.
- How do I get a reverse mortgage? What is the process?
-
- Simple, just call us toll-free at 1-800-662-1211.
- We’ll get some basic information from you (your age, property value, current mortgage) and start to explore what kind of benefits you can expect from getting a FHA Reverse Mortgage.
- If you’re interested we’ll schedule a house-call, where someone will come to your home with an application.
- Once an application is complete you’ll need to get counseling available through a HUD approved agency. We’re happy to provide you with a list of in-person or over the phone counselors.
- When we’ve received your counseling certificate we’ll schedule an appraisal and do all the necessary paperwork to complete your FHA Reverse Mortgage.
- Final Loan Documents: we will bring the final loan documents to you for signing at a time and place that’s convenient for you.
FALSE: Even seniors who have an outstanding mortgage or some other debt on their home may qualify. The proceeds of the reverse mortgage would be used to pay off such debts and the remainder would be available to you.
2. The bank will own my home after I get a Reverse Mortgage.
FALSE: You retain ownership of your home just as you would if you were to take a "regular" mortgage. However, if you permanently move out or the home passes to your estate, the loan must be repaid.
3. When a Reverse Mortgage comes due, the bank sells my home.
FALSE: When the loan must be repaid, you or your heirs can either pay the balance due on the reverse mortgage or sell the home and use the proceeds to pay off the reverse mortgage.
4. Reverse Mortgages are only for the most desperate situations.
FALSE: The Reverse Mortgage is a tool used by seniors from all walks of life to enhance their retirement years, not just for those with difficult financial problems.
