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Frequently Asked Questions

What is a Reverse Mortgage?


If you are a senior looking for ways to access the equity in your home, you may qualify for one of several Reverse Mortgage loan programs currently available. These Reverse Mortgage programs allow you to tap into the equity you currently have in your home, without having to sell your property or apply for a home equity line of credit. You always own your home and instead of making monthly payments, your home can now pay you.

Why get a Reverse Mortgage?


The income received from a Reverse Mortgage can be used for a variety of purposes. Just like a regular refinance, you are not restricted on how the funds can be used. Examples of potential uses for funds received from a Reverse Mortgage include:

  • Supplement retirement income
  • Cover medical expenses
  • Make home repairs or improvements
  • Pay property taxes
  • Pay off in-home care

How is a Reverse Mortgage different from a traditional mortgage?


A Reverse Mortgage is the opposite of a traditional mortgage. With a traditional mortgage or home equity loan, you borrow money from a lender and make monthly payments until your loan is paid off.

A Reverse Mortgage taps into the equity you currently have in your home and pays you monthly payments. With a Reverse Mortgage, you are not obligated to make a monthly payment and you can receive extra income. Payment on this loan is required only once, at the end of the loan, typically when you no longer occupy the home as your principal residence.

What are the benefits of a Reverse Mortgage?


For many older homeowners, a Reverse Mortgage is an effective way to convert home equity into flexible, tax-free income. The benefits are numerous:

  • • Continue to live in and own the home without having to make a mortgage payment
  • • Receive tax free income monthly or in a lump sum
  • • Enjoy the flexibility of determining how you wish to receive your benefit disbursements: fixed monthly payments, a line of credit, a lump sum cash advance, or a combination of the plans
  • • Adjust your payment option to meet your current needs
  • • Repay the loan at any time without penalty
  • • Have peace of mind knowing that you and your
  • heirs have no personal liability for the repayment of the loan

Relax knowing that you owe nothing until after you no longer occupy the home as your principal residence. Talk with your consultant to plan your financial goals.

Can I qualify for a Reverse Mortgage if I currently have an existing loan on my home?


Yes, but the existing loan must be paid off prior to or at the time of settlement of the Reverse Mortgage. Quite often, Reverse Mortgages are used to refinance existing mortgages.

My property is held in a Living Trust. Can I qualify?


Yes, as long as you are the primary trustee and are qualified by age.

To avoid probate, my children and I own the property in joint tenancy. Can we qualify?


Yes, if the children are age 62 and older and live in the property. Otherwise they would need to be taken off title prior to settlement.

Does the IRS consider the monthly advances from a Reverse Mortgage as income?


No. The cash advances are actually loan distributions and are not considered income. The cash advances are tax-free

Are mobile homes eligible?


Yes. The home must have been built in 1977 or later and have a permanent foundation that is approved by FHA.

My spouse is permanently in a nursing home. Can we participate?


Possibly. Please give us a call to talk through your specific scenario.

Are there restrictions on how I can use the money?


No. It’s your money and you can use it as you wish.

Find out if you qualify and receive your Free Guide now

Just answer a few quick questions about you and your home, and you can find out if you qualify for a Reverse Mortgage. You will also receive our Free Guide, with valuable information about the Reverse Mortgage program, as well as answers to many questions our clients frequently ask.

FIND OUT NOW
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Based in San Diego California, Loan Monkey, Inc. is committed to providing a simple and transparent loan process to each and every one of our clients. We believe in putting our clients first, so pick up the phone and call us today!

* Reverse mortgage clients must maintain the property in good standing and continue to pay property taxes and insurance.
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