Understanding
Reverse Mortgages 
Reverse Mortgage Brochure
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It used to be that if you were age 62 or older, there
were only two ways to get cash out of your home. You could sell it or you could
borrow against your home equity. But now, with reverse mortgages, seniors can
tap into the home equity they've built up without moving or taking on extra debt.
For Senior Homeowners Age 62 or Older you can get Tax Free Cash, Pay Off Debt,
Home Improvement, Extra Monthly Income, Medical Care, or just Enjoy a Better Life!
Unlike a traditional mortgage that you pay back each month, a reverse mortgage
makes payments to you. You can get these payments in a lump sum to cover an unexpected
bill. You can get them as a regular supplement to your monthly income. Or, you
can get them at intervals and amounts that are best for you. Here
are some conveniences a reverse mortgage can do for you...
| • No Loan Payment | •
No Change in Title | | • Loan
is not due until home is vacated | •
No income or credit qualifying | | •
Exempt from (SS) & (SSI) benefits | •
Receive monthly income or credit line | Cash Proceeds can
be in the form of a lump sum, a line-of-credit, a monthly income or a combination.
You do not have to make monthly payments and any borrowed funds are not repaid
until the home is sold. Title to the property remains in the name of the owner.
The Reverse Mortgage program enables seniors that may be "real estate rich
and cash poor" to unlock the financial potential in their homes, and let
their home equity work for them. Additionally, the reverse mortgage has no income
or credit requirements to qualify. If you pass away, the loan is due, but
the amount due will always be the lesser of your loan balance or the market value
of your home. Even if the amount you borrowed eventually exceeds the value of
your home, you or your heirs will never owe more than the value of your home.
All proceeds in excess of what you owe belong to your estate, which means the
remaining equity in your home can be passed on to your heirs.
As you
receive your payments, the amount of cash you have left after selling and paying
off the loan -- your equity -- generally grows smaller. But with a reverse mortgage
you can never owe more than your home's value at the time the loan is repaid.
Qualifying for a Reverse Mortgage Individual reverse mortgage
products may have particular requirements. Here are a few basics that apply for
a Reverse Mortgage:
| • You and any co-borrower
must be at least 62 years of age. | | •
If you are applying for a Home Keeper Mortgage, you must occupy the home as your
primary residence (where you live a majority of the year). | | •
You must own your home free and clear or have a low mortgage balance. |
| • You must attend pre-application
reverse mortgage counseling before applying. | | •
Lenders base the loan amount on three factors: the age of the borrower(s),
the number of borrowers, and the adjusted property value for Home
Keeper mortgages or the maximum claim amount for the HECM. |
| • The HECM contains a "growth"
feature that lets any money in the line of credit grow on a monthly
basis. If you do not anticipate needing a lump sum draw at closing, you
should take this growth feature into consideration. While a HECM may offer less
money in the line of credit than any other products, it could grow
to exceed the money available in other reverse mortgages. |
| • You can change payment options at
any time over the life of the loan for a small fee. |
| • No part of the loan is due until you
no longer live in your home or if you violate the loan's terms and
conditions, at which time the full loan is due. You can prepay -- or partially
repay -- the loan without a penalty. | Our goal is to educate
and help you with financial solutions so they can live a better life during your
retirement years. We can help you no matter what your situation may be.
Our friendly representatives are available to answer any questions you may have.
Simply call the number below for more information or to schedule an appointment. | 
