Reverse Mortgage Specifics

Eligibility

The eligibility requirements for a Reverse Mortgage are simple. Although there are no income, employment or credit score qualifying restrictions, the below guidelines must be met.

• All homeowners must be at least 62 or older and occupy the home as a primary residence.
• The home will either need to have no mortgage balance or a mortgage balance which can be paid off by a Reverse Mortgage.
• The property must be a single family or two-to-four family unit owner-occupied home.
• Condominiums, townhomes, detached homes, planned unit developments (PUDs) and some manufactured homes are eligible.
• The home must be up to HUD minimum standards. In some cases, repairs can be made after a reverse mortgage closing.

How Much Can Be Borrowed?

The Reverse Mortgage loan amount is based on the following factors:

• The age of the youngest homeowner
• The appraised value of the home
• The current interest rate
• The local lending limit as set forth by FHA

Generally speaking, the older you are, the more your home is worth and the lower the interest rate, the more you will be able to borrow. To find out how much you can borrow, contact your AnnieMac Home Mortgage Reverse Mortgage Loan Originator.

Payment Options

Homeowners who obtain a Reverse Mortgage have differing needs. Some would rather receive the entire loan amount up front, while others prefer a steady monthly income to supplement their other income. Regardless of how you choose to receive your proceeds, you can adjust your plan as needed to accommodate your changing needs. You have several options to receive your reverse mortgage proceeds. They can be available to you via the following distribution options:

• Lump Sum – A specific amount is made immediately available (typically used to pay off an existing mortgage).
• Tenure – Loan proceeds are sent monthly for as long as at least one homeowner continues to occupy the home as a primary residence.
• Term – Loan proceeds are released in set monthly amounts for a specific period as requested by the homeowner.
• Line of Credit – Funds remain available for the customer to draw on as needed.
• Combination – Homeowners receive any combination of lump sum, monthly, or line of credit distributions.

Interest Rates

AnnieMac Home Mortgage has access to both fixed and variable interest rate Reverse Mortgages. Although Reverse Mortgage products can change, the variable interest rate product can typically be selected to adjust monthly or yearly. While your loan balance could grow faster if interest rates change, this will not alter the number of loan advances you can receive.

Repaying a Reverse Mortgage

There is no requirement to repay the loan as long as you or one of the borrowers continue to live in the home. Additionally, you must keep the taxes and insurance current and maintain the property to minimum FHA standards. Once it is time to pay off the loan, the balance due can come from home sale proceeds or from other sources, such as insurance, savings or possibly applying for a new mortgage. There is no requirement that the home be sold, only that the loan be repaid.

Possible Effect On Other Benefits

Reverse Mortgage loan proceeds are not considered income and do not affect Social Security of Medicare benefits. However, receiving monthly Reverse Mortgage advances could affect your eligibility for some public assistance programs which are based on need. To be sure you are properly advised, please consult a local attorney to determine how (or if) your Reverse Mortgage distributions might impact your specific situation.

To learn more, please contact Ben Stucker at 856-505-6603 or bstucker@annie-mac.com