The Process
Step-by-Step Video Guide to Getting a Reverse MortgageA Video Guide to Reverse Mortgages
The Reverse Mortgage Process – A Step-by-Step Video Guide
The Reverse Mortgage Process: You can watch the following series of ten short videos, which explain each facet of how a reverse mortgage works. You can download the videos and share with anyone you like – AND never receive another phone call or email from us. You are in complete control of what you want to know, when you want to it and how to take the next steps – if you are interested. If you do decide to get a quote package tailored to your specific situation, we will find the most competitive offer in your area, and share it with you free of charge and without further obligation. No pressure, no interruption or phone calls at dinner. No contact, unless it is in response to a request by YOU!
Please click on each of the 10 videos below for a step-by-step explanation on the Reverse Mortgage Process
1. Reverse Lending Network Introduction
This is the singular best place to find out about a reverse mortgage, without the risk of having 100’s of emails and phone calls, every day for the next six months. Our guaranty is simple. You can watch the following series of short videos, which explain each facet of how a reverse mortgage works.
2. Reverse Mortgage Basics
First you will need to understand some of the basics in our second video of the series.
- You need to be 62 years old or older to qualify for an FHA reverse mortgage
- You are only responsible to pay the property taxes, insurance and HOA dues…
- You remain in title and own the home in your own name
- You can stay in your home, for as long as you are able
- Watch Video for more Reverse Mortgage Basics…
3. You Stay in Title and Own Your Home
The Lender or Bank does NOT get title to your home. A Reverse Mortgage only comes due in the following circumstances:
- Upon the death of the last “Borrowing Spouse”.
- Surviving family members can sell or refinance the home, just like any mortgage & Surviving heirs are guaranteed
- Watch video for more…
4. Vulnerable Spouse Protections
It is still a best practice to have both borrowers be at least 62 years of age or older. A non-borrowing spouse will be covered by the basic guaranty and will be allowed to stay in the home, so long as they continue to pay the taxes and insurance and meet the other FHA reverse mortgage requirements. Watch Video for more details
5. Protections to Address Overindulgence
HUD/FHA now require a third party counseling session be completed and a certificate be obtained, before the lender is allowed to take an application from the borrower(s).
Additional disclosures are also required to be signed by the borrowers, which warn borrowers about using the funds obtained from a reverse mortgage, to fund other investments and to help prevent fraud.
6. Loss of Family Home Concerns Addressed
Early versions of the reverse mortgage loan program allowed much higher ‘principal limits’ or loan-to-values. Consequently, many surviving family members of reverse mortgages found that their parent’s former home was upside down. In this video we look at how changes to the program have now addressed these concerns.
7. Three Different Ways You May be Able to Access Equity
Reverse borrowers with enough equity, may be able to access some of their equity, beyond just paying off their current mortgage. This additional access to their equity is the difference between the ‘principal limit’ and the amount of any current loan they owe. The ‘principal limit’ is based upon the youngest borrowing spouse’s age. The older you are, the larger the portion of your equity you can access! And you have three primary ways to access that portion of your equity. All distribution types are tax free!
8. Receiving a Monthly Stipend
Some reverse borrowers opt to receive a portion of their equity, as a monthly payment, by check or automatic deposit. Borrowers can choose from receiving these payments for a fixed number of months or years, or they may choose to receive a monthly check for the ‘life of the loan’. Remember that “life of loan” generally means until the last remaining spouse has died, refinanced or sold the home.
9. The Most Popular Form of Distribution – Line of Credit with Growth
Most borrowers don’t need a large one-time lump sum distribution at closing. Other borrowers don’t need a fixed stipend every month. They prefer to self manage withdrawing their equity, as needed to cover unexpected expenses, or planned events like vacations.
10. Using a Reverse Mortgage to Purchase Your Next Home
Now we have seen all the ways that refinancing your home into a reverse might help manage your income in retirement. However, many borrowers are not currently living in the ‘forever” home. Did you know that you can use a reverse mortgage to purchase a home? And in most cases, using a reverse mortgage will increase your buying power significantly, compared to using conventional financing options!