older couple outside their home

Reverse Mortgage

Reverse Mortgages are a valuable financial tool for seniors, 62 years or older, that gives them the opportunity to increase their monthly cash flow in order to fully enjoy their retirement years, remain independent and stay in their own home.

A reverse mortgage is a loan that allows seniors to convert the equity in their home into income or buy the home they want allowing them to stay in their home and receive cash for any purpose (i.e., home improvements, health care costs, travel, etc.). You decide!

With an HCU Reverse Mortgage you can choose to:

  1. Take the proceeds in a lump sum.
  2. Open a line of credit and use the proceeds as needed.
  3. Take a Home Equity Conversion Mortgage (HECM) for Purchase, which allows you to purchase the home you want while reserving your retirement savings.

Benefits:

  • You retain the title of your home and can continue to live there.
  • Easy access to equity built in the home
  • Tax-free equity release
  • No required monthly mortgage payments
  • Interest is tax deductible
  • Lender has no claim on your income or assets other than the current market value of the home

Best for people who:

  • Are 62 years of age or older
  • Do not have enough money to pay for long term health care insurance
  • Want to get out from underneath an existing mortgage
  • Want the flexibility of having a credit line

Other considerations:

  • The amount of funds available depends upon:
    • Appraised value of home or maximum lending limit
    • Borrower’s age
    • Current interest rate
  • A counseling session with a Reverse Mortgage Specialist is required
  • You have the responsibility of maintaining your home and paying property taxes and insurance.
  • There are fees involved such as origination fees, closing costs, servicing fees and mortgage insurance premium.
  • No payment is made until the home is sold or the owner permanently moves out or passes away
  • No income qualification
  • When the loan is due, the heirs have choices -they can repay the loan and keep the house, or sell the house and repay the loan

 Contact one of our Mortgage Specialists to find out more. 

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