Reverse Mortgage Basics

A reverse mortgage is a home loan for people 62 years old and up that provides money without the obligation of monthly payments. Reverse mortgages allows homeowners to safely and securely use of some of their home equity for their benefit.

The most widely used program is the Home Equity Conversion Mortgage (HECM) which was designed by Congress in the 1980’s. Most reverse mortgages are very similar to the HECM. The U.S. Department of Housing and Urban Development (HUD) and the Federal Housing Authority (FHA) regulate and insure the HECM reverse mortgage in Florida and other states.

What a Reverse Mortgage Can Do For You

  • Receive tax-free cash without making payments for as long as you live in your home
  • Use the funds to pay off your current mortgage, eliminating your monthly payments; remaining funds may be used for any purpose
  • Maintain control of your title and home ownership
  • Funds may be received monthly, as a lump sum, as a line of credit or any combination thereof
  • Available line of credit grows like a saving account, at 5-6% annually
  • Leave your home and remaining equity to your heirs
  • You can never owe more than the home is worth
  • HECM Reverse Mortgage is insured by Federal Housing Authority (FHA)
  • Regulated by the US Dept. of Housing and Urban Development (HUD)
  • Independent, HUD-trained reverse mortgage counselors are available for consultation

What is Required

  • With some exceptions, the minimum age to qualify is 62
  • Amounts and qualifying is based upon the homeowners’ age, equity in the home and location. Reverse Mortgage Calculator for an estimate and to see if you qualify.
  • Reverse mortgage money must first be used to pay off any existing mortgages
  • No credit, income or health requirements
  • Eligible property types include single family, condo, town-home, 2-4 unit building, some mobile / manufactured homes and stock cooperatives
  • Home must be the primary residence of the borrower(s)

The Process to get a Reverse Mortgage

  • Learn about the basics and why use FutureSafe
  • Use our reverse mortgage calculator to see if you qualify
  • Request a free reverse mortgage quote (see form below)
  • Review the quote and decide which program is right for you
  • Contact us to request your 1 hour reverse mortgage phone counseling session
  • We do the application, appraisal and underwriting
  • Sign the closing documents and the process is complete