A Reverse Mortgage loan can optimize cash flow. It can contribute to a more contented retirement. Use the reverse mortgage proceeds to supplement your pension or social security income, for home repairs, buying a car, unexpected expenses, even use it as a down payment toward a new home – whatever you choose.
So, based on the HUD formula and assuming you have no liens on the home, the older you are, the more your home is worth, and the lower the interest rate, the more you may be able to borrow — up to the national lending limit. I can do a personalized calculation for you based on your specific information.
Reverse mortgage loans are specifically designed for and exclusively available to homeowners who are at least 62 years of age and have substantial home equity. Applicants must agree to receive (face to face or telephone) mortgage counseling from a HUD-approved counseling agency to explain your potions and confirm your eligibility. Explain HUD – Housing and Urban Development
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Financial Planning Reverse Mortgages
Help your clients make themost of retirementWith reverse mortgages in your financial planning tool boxChris Beard, NMLS# 353274Reverse Mortgage Specialist9822 Montague StreetTampa, FL 33626Cell: 813-857-1254Toll Free: firstname.lastname@example.org.GoLocalReverseMortgage.com
Reverse mortgage solutionsA reverse mortgage can be a key element of a comprehensiveretirement plan. The proceeds can be used for any purpose,including:• Planned giving• Estate planning• Life insurance• Long-term care1. Consult a tax advisor 2
Reverse mortgage prospectsAre at least 62 years old:• Own their home as their primary residence• Own the home free and clear or have a mortgage balance that can be paid off by the reverse mortgage• Are looking for a way to manage expenses or fund retirement goals 3
Reverse mortgage advantages• Enables senior homeowners to convert their home equity into tax-free proceeds1• Borrowers can receive payments instead of making them• Borrowers retain ownership and continue to live in the home, provided all program requirements are met• Proceeds are not considered income and will not affect Social Security or Medicare benefits2 1. Your clients should consult a tax advisor. Some restrictions may apply. 2. Your clients monthly reverse mortgage advances may affect their eligibility for some other programs. They should consult either a local program office or their attorney to determine how, or if, monthly reverse mortgage payments might affect their specific situation. 4
How can a reverse mortgage benefityou and your clients?Qualification • Senior homeowners age 62 years or older • No credit score, income or employment restrictions3Loan paymentsNo payments required, as long as all program requirements are met.Please ask a reverse mortgage consultant when repayment may be due.Interest rateVariable-rate mortgage or fixed-rates available4 3. Reverse mortgage borrowers are required to obtain an eligibility certificate by receiving counseling sessions with a HUD-approved agency. Family members are also strongly encouraged to participate in these informative sessions. Call for more detailed program information. 4. Fixed-rate reverse mortgages must use a lump sum disbursement option. 5
Credit line GrowthUnused credit line grows at the same rate as the outstanding loanbalanceDisbursement Options• Fixed monthly payments• A line of credit• Lump sum cash advance• Or a combination of any of these options 6
Typical closing costs• A deposit for the appraisal is required to be paid at the time ofapplication.• There are additional closing costs, such as an origination fee, title insurance, a mortgage insurance premium and attorney fees which can be financed into the loan.• Beyond that, the customer is expected to continue maintaining the property and paying the real estate taxes and homeowners insurance premiums. 7
Counseling requirementsCounseling session from a FHA-approved counseling agency required.3Tax guidelines• Proceeds are considered tax-free• Interest deduction occurs only when the loan is paid in full 3. Reverse mortgage borrowers are required to obtain an eligibility certificate by receiving counseling sessions with a HUD-approved agency. Family members are also strongly encouraged to participate in these informative sessions. Call for more detailed program information. 8
Advantages of Reverse MortgageUsing a reverse mortgage as a financial planning tool, your clients canconvert their home equity into tax-free proceeds they can use to fund their retirement goals.Unlike a conventional mortgage, with a reverse mortgage, a homeowner can choose to receivepayments instead of making them. The incoming cash can help pay credit card debt, medicalbills or unexpected expenses — even purchase a home!Customers do not need to repay the loan as long as they continue to live in the house, keep thetaxes and insurance current, and maintain the property to FHA standards. 9
Allow me to assist you and yourclients with a Reverse Mortgage:Chris Beard, NMLS# 353274Reverse Mortgage Specialist9822 Montague StreetTampa, FL 33626Cell: 813-857-1254Toll Free: email@example.com.GoLocalReverseMortgage.com This information is for financial planning and legal professionals only and is not intended for distribution to consumers. This information is accurate as of date of printing and is subject to change without notice. 10