ILLINOISREVERSEMORTGAGEINFO.COM

Reverse Equity Home Mortgages For Senior Citizens

A Reverse Equity Mortgage (reverse mortgage) is a loan against the equity in a home that gives tax-free cash advances, but requires no payments during the term of the loan. Since there are no monthly payments during the life of the loan, the balance grows larger and the equity gets smaller.

The loan is not due until the borrower no longer occupies their home as a principal residence (last surviving borrower sells, moves out permanently or passes away).

You need to be at least 62 and own your own home/condominium in order to qualify for a Reverse Equity Mortgage (reverse mortgage) & (There are no income or credit requirements needed to qualify). Based on your amount of benefit, which you qualify for, you may be eligible for a reverse mortgage even if you still owe money on your first mortgage.(usually a 55% LTV ratio) IE: $45,000 equity-$100,000 appraised value)

There are 2 main Reverse Equity Mortgage (reverse mortgage) loan products available:

Flexible Income Payment Option by FHA?VA
Growing Line of Credit
Maximum Lending Limit - $ 280,749

Mae HomeKeeper by Fannie Mae
Line of Credit Options
Maximum Lending Limit - $ 322,700

Another benefit of a Reverse Equity Mortgage (reverse mortgage) is that it is "NON RECOURSE" which means that no matter how high your loan balance grows, you or your heirs never owe more than the home's market value.

The proceeds from a Reverse Equity Mortgage (reverse mortgage) can be used for anything that you want to do with it.

The proceeds from a Reverse Equity Mortgage (reverse mortgage) is available as a lump sum, fixed monthly payments for as long as you live in the property, a line of credit, etc.

The amount of benefit that you will qualify for will depend on your age at the time you apply for the loan. The type of Reverse Equity Mortgage (reverse mortgage) that you choose, the value of your home and current interest rates. As a general rule, the older you are and the greater your equity, the larger the Reverse Equity Mortgage (reverse mortgage) benefit will be.

The costs associated with getting a Reverse Equity Mortgage (reverse mortgage) are similar to those like a conventional mortgage, such as the origination fee, appraisal and inspection fees, title policy, mortgage insurance and other normal closing costs. With a Reverse Equity Mortgage all of these costs can be financed as part of the mortgage.