Reverse Mortgage Benefits


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The specialists at All Reverse Mortgage Company are passionate about seniors and their right to age with dignity in place. We believe that everyone deserves the right to use the equity in their homes to enrich their lives, (whether that be in the form of home improvement or fixing their homes to accommodate their changing lives) augmenting their retirement income, obtaining additional cash for medical needs, travel or for any other needs you may have. Whatever your needs are, you have spent a lifetime paying for your home to build equity and now it's time for your equity to pay for those needs for you.

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Reverse Mortgage Benefits

  1. 1. Cliff Auerswald / Sales Manager Cliff Auerswald / Reverse Mortgage Specialist Reverse Benefits Package Senior Lending Specialists (888) 801-2762 /ARMC
  2. 2. Reverse Mortgages are designed for senor borrowers, aged 62 and older, which allows the equity in their homes to pay them rather than them paying for their home, the homeowner never makes a payment. The most common reverse mortgages are the government insured mortgages which the Federal Housing Administration allows lenders to originate and HUD insures. This program was signed into law by Ronald Reagan in 1988 and to date, HUD has insured more than 300,000 senior reverse mortgages, allowing more than 300,000 seniors the opportunity to age at home. There are also private programs available for seniors living in higher valued homes that may be too high for FHA feasibility, and All Reverse Mortgage Company offers a wide range of both government and non-government products! What is a Reverse Mortgage ?
  3. 3. How are Reverse Mortgages different Today? You may have heard about the early problems some reverse mortgage programs had. Early programs contained provisions which allowed for shared appreciation and did create some problems. The programs of today have no shared appreciation, you always retain the title to your home, and the title to your property goes to your heirs just as it would if you didn’t have a reverse mortgage. Reverse mortgages have been made a safe and viable retirement tool in that you or your heirs can never owe more than your property is worth regardless of how long you own the property, how much cash you take from it or what property values do in the future.
  4. 4. How does the Reverse Mortgage compare to a Conventional Mortgage ? In comparison to a conventional forward mortgage, you make monthly payments to the bank eventually paying off the mortgage over time. On a Reverse Mortgage the bank allows you to tap into that equity allowing you to supplement retirement in either monthly payments for life, a credit line that grows with your age, or even a combination of both. Or with some programs, you can use a reverse mortgage to purchase that dream retirement home with no payments for life! You can use this money for any purpose and it’s non-taxable and does not affect Social Security payments. We do recommend that you talk to a competent financial advisor to determine the affect on any other benefits you may be receiving.
  5. 5. - Government Insured - You Retain Title - Property Transfers to Heirs - Money is Tax Free* - No Effect on Social Security - No Effect on Medicare - No Prepayment Penalty - Non Recourse (This means you or your heirs can never owe more than the property is worth) *Should Always speak to a qualified tax professional Features & Safeguards
  6. 6. “ All people who take a reverse mortgage are house rich and cash poor” ….Incorrect. While some require this type of loan for immediate financial relief, others are using the reverse mortgage as an excellent financial planning tool. Reverse Mortgages are used today for all walks of life. We have seen people use their money from paying off existing mortgages and credit card debt, to home improvement and purchasing an RV and traveling. Whether you utilize a Reverse Mortgage in a $300,000 home or a $3,000,000 home, a reverse mortgage has become a popular investment and retirement tool for many seniors.
  7. 7. What do I need to Qualify? - Minimum Age is 62 - No Income or Employment - Excellent Home Equity - Minimal Credit Requirements There is no minimum credit score but there are some federal obligations which cannot be delinquent. Can the Bank take my home? The only requirements of a reverse mortgage is that you must occupy the property as your primary residence, pay your property taxes and maintain the property in reasonably good condition.
  8. 8. <ul><li>SFR, Condo, Pud </li></ul><ul><li>1-4 Units Primary </li></ul><ul><li>Modular Home </li></ul><ul><li>Manufactured Home* </li></ul><ul><li>*Permanent Foundation built after 06/15/1976) Mobile Homes & Co-ops </li></ul><ul><li>are NOT Eligible. </li></ul>… Eligible Properties - SFR, Condo, Pud - 1-4 Units Primary - Modular Home - Manufactured Home* *Permanent Foundation built after 06/15/1976) Mobile Homes are NOT Eligible. Is my Home Eligible?
  9. 9. Reverse Terms: 1. Credit Line or Lump Sum 2. Tenure (Payment for LIFE) 2. Term (5, 10, 20 etc) Or even a … Combination What options do we have to get our money? Reverse Payments: 1. Credit Line or Lump Sum 2. Tenure (Payment for LIFE) 2. Term (5, 10, 20 etc) Or choose Combination
  10. 10. 3 rd Party Counseling HUD and local laws require third party counseling for reverse mortgages. Counseling is provided by a HUD approved Counseling Agency and you may not incur any costs until you have gone through your counseling and fully understand your new reverse mortgage (another HUD safeguard). Usually takes 45Min-1hour & may be conducted in person or over the phone
  11. 11. Family Trusts Power of Attorney Conservatorships Trusts, Powers of Attorneys and Conservatorships are all acceptable methods of closing loans for reverse mortgages when done according to FHA guidelines. If your situation calls for dealing with a trust, power of attorney or Conservatorship, then please let us know so that we can get them approved in advance
  12. 12. What are the costs associated? Costs of a Reverse Mortgage are Never out of pocket expenses and are typical to any conventional mortgage. These costs include origination, appraisal, escrow and title insurance. If the Government HECM is best for you (Home Equity Conversion Mortgage) An additional 2% Mortgage Insurance will be applied to your Reverse. Remember that costs associated with the Reverse Mortgage not out of pocket expenses and you will never be required to make a mortgage payment on the money you receive.
  13. 13. At ARMC we are committed to your needs. We ask that you put your trust in the hands that know Reverse lending best, All Reverse
  14. 14. Questions about your benefits? Call today and speak with one of our knowledgeable Senior Specialists. Toll Free: (888) 801-2762