The reverse mortgage program, is allowing more seniors to stay in the home they love. Below, you’ll learn what you need in order to close your loan as well as some general reverse mortgage information.
- Clear copy of unexpired Driver’s License or State Issued ID Card
- Clear copy of Social Security Card
- Clear copy of Social Security Awards Letter
- Clear copy of most current Homeowner’s Insurance Declaration Page showing agent name and number
- Clear copy of Property Tax Receipt
- Clear copy of Property Title/Deed and proof of satisfaction of mortgage (if applicable)
- Statement from current mortgage institution (if applicable)
- Reverse Mortgage Counseling certificate (original copy)
- Two months bank statements (all pages even blank pages)
- Clear copies of all assets (401K, Pension Plan, Annuities, Savings, etc.)
- Clear copy of Death Certificate for spouse (if applicable)
- Clear copy of Durable Power of Attorney, Trust Agreement, or Conservatorship (if applicable)
Reverse Mortgage Basics
A reverse mortgage is a financial tool for senior homeowners 62 and older. Also known as HECM (Home Equity Conversion Mortgage), a reverse mortgage, allows the homeowner to pay off their current mortgage, continue to live in their home, pay their bills, and use the remaining money however they see fit.
What are the eligibility requirements?
- Borrower must be at least 62 years old
- Home must be a primary residence and be occupied within 60 days of the loan closing
- Home must be a single family home or a FHA approved condo
- A HUD approved counseling session
What is the reverse mortgage process?
Here is a step-by-step guide to a reverse mortgage loan.
- Once One Reverse Mortgage is familiar with your specific situation and goals of the reverse mortgage, our experts can determine if a reverse mortgage is a good fit for your needs.
- Complete your application, followed a counseling appointment. During your appointment a licensed expert will review your application with you a provide you with all the essential information you need to set up your counseling appointment.
- Next comes the appraisal. An independently approved FHA appraiser will come out and appraise your home.
- Closing and disbursement follow the appraisal. Once the loan is approved a final signing is scheduled where closing costs and the interest rate is calculated. After the closing of the loan you have three business days to cancel. After this three day period has passed, you will begin receiving payments according to whichever payment option you selected that best suited your unique loan.
- The final step in the reverse mortgage process is the repayment. No payments are made while you are living in the home.* The balance becomes due when the home is either sold, is no longer a primary residence, or the borrower passes away. As the borrower you are still responsible for taxes, insurance, and home maintenance. In the event that the borrower passes away the home may be repaid by the sale of the home or refinancing of the existing reverse mortgage. The remaining equity belongs to the heirs of the estate.
*Homeowner is still responsible for taxes, insurance and property maintenance.