Due to unforseen increases in real estate taxes, cost of living and the cost of energy, seniors are facing larger bills than they had planned. Add in the simple fact that many of them have had their pensions and/or retirement compromised, some seniors today are facing financial challenges.
There are a few options for the homeowners. The one I would like to mention is called a Reverse Mortgage.
A Reverse Mortgage is a financial vehicle in which a homeowner can convert a portion of the equity in their home into immediate tax-free income. As long as the individual or at least one of the couple (if a couple takes out the loan) remains in the home, there are no payments. The loan is payed off when the home is no longer the primary residence of the homeowners (i.e. selling the home, homeowners pass away). The program is authorized and insured by the FHA and HUD.
To qualify for a Reverse Mortgage, the homeowners must be at least 62 years old and the home must be their primary residence. There are no income or credit requirements.
In order to determine if this product is suited for you or your clients, please advise them to consult with a Reverse Mortgage Specialist. All initial meetings and information should be free (i.e. there should be no application fee). If they are not, move onto another Specialist.
Sajjan Sharma (Reverse Mortgage Educator)
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