You have several options to receive your reverse mortgage proceeds, they are available to you in the following distribution options:
Lump Sum – A specific amount is made immediately available (often used to pay off an existing mortgage).
Term – Funds are released in fixed monthly amounts for a set period requested by the borrower.
Tenure – Funds are distributed in fixed monthly allotments for as long as at least one homeowner continues to occupy the home as a primary resident.
Line Of Credit – Funds remain available for the customer to draw on as needed or in automatic monthly disbursements.
Combination – You can choose any combination of lump sum, monthly or line of credit disbursements. You can even receive an initial lump sum and put the rest in a line of credit. Regardless of how you choose to receive your proceeds, you can adjust your plan as often as you wish to accommodate changing needs.
You do not need to repay the loan as long as the program requirements are met, including:
You or one of the borrowers continues to live in the house as your primary residence.
You keep the property taxes and homeowners insurance current.
You maintain the property.
The balance due can come from home sale proceeds, or from other resources, such as savings, insurance or possibly applying for a new mortgage. There is no requirement that the home be sold, only that the loan be repaid.
Home equity, along with your other possessions, belongs to you or your heirs .
1. Meet with a Reverse Mortgage Specialist at Eastern Trust Lending to apply for your loan.
- Fill out an application
- Select a plan right for you
- Present required documentation
Receive consumer counseling from a HUD-approved counselor.
Underwriting process begins.
Loan approval, a closing is scheduled.
Your loan funds and proceeds are disbursed.
Frequently Asked Questions Who owns the home? You do. You retain the title and ownership of your home. The bank does not own your home. Can the bank take my home? Will I be forced to sell my home if the money I owe on the loan exceeds the value of my home? No, as long you continue to occupy the home as your primary residence, pay the appropriate taxes and insurance.
Are there restrictions on how I can use my reverse mortgage proceeds?
Absolutely Not ! It’s your money to use as you see fit. Some common uses include:
Eliminating your existing mortgage
Meeting daily or monthly expenses
Covering healthcare expenses
Remodeling or home repairs
Reducing credit card debt
Setting up an emergency fund
Going on a much needed vacation
Frequently Asked Questions What if the value of my home increases during the mortgage term? No matter if, or how much, your property has appreciated in value, you or your estate are only required to pay back the outstanding balance due on your reverse mortgage at the time the home is sold . Any excess proceeds from the sale of your home belong to you or your estate.
Frequently Asked Questions Will receiving my reverse mortgage proceeds in monthly payments affect my Social Security or Medicare benefits? If you opt to receive monthly payments, they will not affect your Social Security or Medicare benefits. However, your monthly eligibility for need-based programs such as Medicaid or state assistance programs may be impacted. We recommend that you consult a tax or legal advisor and your local Area Agency on Aging for advice. We can assist you in researching this and getting the correct information.
Frequently Asked Questions What if I decide to sell my home? You always retain the title to your home during the period of your reverse mortgage loan. You can sell your home at anytime and pay off the reverse mortgage with the proceeds and you or your heirs receive the equity.
We can help you choose the reverse mortgage financing solution that best fits your individual needs and requirements. 07/11 James Stout Reverse Mortgage Specialist Tel: (954) 993-6150 Fax: (888) 578-9669 3327 NE 32 nd Street, Fort Lauderdale, FL 33308 [email_address] www.EasternTrustLending.com