Reverse mortgage facts
The Home Equity Conversion Mortgage (HECM) is a Federal Program. This program is made possible by the Department of Housing (HUD) and only available through a Federal Housing Administration (FHA) approved lender.
With a Reverse Mortgage, you may choose to receive a lump sum, line of credit, or monthly payments tax free for the rest of your life. With that money you may be able to pay off your mortgage and eliminate your mortgage payment or pay off credit card debt, cover medical expenses, pay for in-home care expenses if needed, enjoy a vacation or spend the money any way you wish.
You do not make payments on a Reverse Mortgage. Heirs still receive the property.
There is no credit score requirement.
Here are some frequently asked questions about Reverse Mortgages
Q. What is an FHA Reverse Mortgage?
A: An FHA Reverse Mortgage permits a Senior 62 or older (Spouse under 62 okay) to convert a portion of their home equity into cash or to finance the purchase of a primary residence.
Q: What can I do with the money I receive?
A: It’s your money, spend it any way you wish. Some examples are: you pay off your current mortgage if you have one, can pay off credit cards, buy a home, establish a family member’s educational fund, make repairs to the home, set up an emergency fund, or receive monthly income to supplement your Social Security.
Q: I have a mortgage on my home. Can I still get a Reverse Mortgage?
A: Yes, A Reverse Mortgage will be used to pay off your current mortgage and eliminate your monthly mortgage payments forever. Only pay taxes and insurance
Q: Am I required to pay income taxes on the money I receive?
A: No, you are converting you home equity into cash. This can be verified with your tax preparer.
Q: Can I continue to receive my Social Security, Medicare or Medicaid benefits if I get a Reverse?
A: Yes, however, there are restrictions on how money can be received if you are on Medicaid. For further questions, contact Social Security at 800.772.1213.
Q: Is good credit and income required?
A: Verification of credit history is required. We must also verify that you can pay real estate taxes and property insurance on your home. Normal living expense will be taken into consideration.
Q: How do I find out if I qualify for a Reverse Mortgage?
A: You may contact John Lessard at Sorrento Financial Mortgage (951) 225-8041.
Q: Do I make monthly payments on my new Reverse Mortgage?
A: No, you do not have to make payments on a Reverse Mortgage. Payment of property taxes and home insurance are obligatory to remain in the program.
To find out more and receive free consultation please call: John Lessard (951) 225-8041. Sorrento Financial Mortgage Corporation since 1991 NMLS #238347 Since 1991- NMLS: 1529893 [email protected].