Reverse Mortgage

If you are age 62 or older and a homeowner, you may qualify for a Reverse Mortgage, or Home Equity Conversion Mortgage (HECM).  A reverse mortgage is a unique type of FHA product that allows borrowers to convert a portion of the equity in their home to liquid funds with no restrictions on the use of the proceeds.  Furthermore, there are no required monthly loan payments and no credit or income qualification requirements associated with a Midwest Mortgage Capital Reverse Mortgage. 

Unfortunately, the reverse mortgage is probably the most misunderstood home loan option in the market today.  Please allow us to dispel some common myths:

· The bank will not suddenly take your home away because you have a reverse mortgage.  
· You/your heirs will never have to pay back more than the fair market value of the home. 
· You will never be required to make loan payments on a reverse mortgage.

Disbursement Options

· A single lump sum, taken at closing

· A line of credit that allows for withdrawals at any time, in case you need it

· A monthly advance that continues for as long as you live in your home

· Any combination of the above options

Reverse Mortgage Borrowing Limitations

The amount of equity that can be withdrawn depends on several factors, including your age, the appraised value of your home, and where you live.  To get an estimate on how much equity would be available to you, visit AARP's homepage.

Important Things To Know (Avoiding Default):

· You must pay your property tax, homeowner's insurance, or any applicable association dues on time

· You must occupy the property as your primary residence - if you vacate for 12 months or more, default occurs

· You must maintain the property in liveable condition

· Your heirs must pay off the reverse mortgage lien or contact HUD for arrangements within 6 months of the last borrower's passing

· If you sell the home, the lender must be paid the lesser of either the mortgage balance or 95% of the home's Fair Market Value

To learn more details and to get prequalified for a Reverse Mortgage loan, please contact your local Midwest Mortgage Capital Mortgage Consultant or apply online.