Reverse Mortgages

What is a Reverse Mortgage?

It’s a loan that allows homeowners 62 years and older to access a portion of the equity in their homes for use in retirement. Reverse mortgages are also known as home equity conversion mortgages (HECMs), which are insured by the Federal Housing Administration (FHA). Note that not all reverse mortgages are federally insured.

What Are The Benefits?

A reverse mortgage from CrossCountry Mortgage, Inc. can provide you with the following benefits:

Eligible Borrowers

You must meet the following criteria to be eligible for a reverse mortgage:

Eligibility Properties

Reverse mortgages follow FHA property eligibility standards, so your home must be one of the following:

Considerations

Mortgage Counseling

Before you apply for a reverse mortgage, you must first consult a HUD housing counselor. This will help you determine whether a reverse mortgage is right for your situation.

How Repayment Works

Unlike a traditional mortgage in which you make monthly payments, a reverse mortgage uses your home equity to provide you with a source of income for a defined period of time. Income from a reverse mortgage might not be available for the entire time you will live in the home. The mortgage becomes due when you die, sell your home, or move out. If you pass away, the loan can be repaid with a life insurance policy or through heirs selling the home or by refinancing the reverse mortgage into a new loan.

Your Responsibilities

While you don’t have to make monthly mortgage payments, you’re still responsible for property taxes and homeowner’s insurance. You must also keep the home in good condition.

Partners & Dependents

If you have a partner, consider whether he or she should be a co-borrower. Any dependents should be prepared to move should you and your partner pass away or move out.

How Is Interest Applied?

Interest is added to the loan balance each month. You don’t have to make monthly interest payments, but any payments you do make will go toward any accrued interest. 

Contact one of our licensed loan officers can help you to understand reverse mortgages and their requirements and help you through the loan process every step of the way.


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