How to Apply

At Blake Mortgage, we make the
the process of getting a reverse mortgage
simple and fast.

What is a Reverse Mortgage?

• A loan for seniors age 62 and older
• Converts a portion of home equity into cash with no monthly mortgage payments*
• Majority of reverse mortgages are HECMs (Home Equity Conversion Mortgage, a federally insured program)

*Taxes and insurance must still be paid on time. Any costs to keep up property maintenance must still be paid. Failing to meet these requirements can lead to default.

Do you have a question about our process of getting a new home purchase loan? Learn more below, or feel free to contact us. We look forward to hearing from you!

How Does it Work?

• You must live in home as your principal residence.
• No repayment of the mortgage is required until you permanently move out, sell the home, or pass away.
• You are required to continue paying property taxes and insurance and maintain the home according to FHA guidelines.

Advantages

• No monthly mortgage payments*
• Non-recourse loan –you’ll never owe more than what home is worth
• Leverage crucial retirement cash liquidity
• No limitations on how you use funds
• No pre-pay penalty
* You must live in the home as your main residence.

Eligibility

• Be 62 years of age or older
• Own the property outright or have considerable equity
• Occupy the property as your principal residence
• Not be delinquent on any federal debt
• Participate in a consumer information session from HUD

Consumer Protections

• Non Borrowing Spouse (< 62) is now protected
• All FHA HECM’s are insured through the Federal Housing Administration (FHA)
• Borrowers have no limit as to how long they can stay in the home*
• When loan becomes due, Estate can buy your home at 95% of current value, regardless of what
is owed
• Education: Financial counseling is required (provided by HUD)
• Safeguards: Ensures the amount owed on the loan can never be more than the value of the home at the time of sale. (Reverse Mortgages are Non-Recourse Loans.)

*Taxes and insurance must still be paid on time. Any costs to keep up property maintenance must still be paid. Failing to meet these requirements can lead to default.

Is a Reverse Mortgage Right for Me?

Things to Consider

• Prepare for counseling meeting. Schedule a time now!
• Continue keeping property taxes and homeowners insurance current
• Home value, owner age(s), and current interest rate determine eligible amount to borrow

Non-Recourse Loan

• The HECM is insured through FHA and is a non-recourse loan.
• The homeowner or their heirs will never be asked to pay back more than the value of the home, even if the debt has grown to be greater than the value.*
*If the heirs choose to keep the home, they will need to pay off the loan at 95% of the fair market value of the home, as determined by a third-party appraiser.

Frequently Asked Questions

Will I still have an estate that I can leave to my heirs?

When the loan is due, the estate will repay the cash they received from the reverse mortgage, plus interest and any other fees, to the lender. The remaining equity in the home, if any, belongs to the borrower or to their heirs. The more you borrow and the longer you stay in the loan, the less equity your estate can typically expect to receive. Factors that determine future equity include; future interest rate (+/-), home appreciation (+/-), consumer spending, longevity in the loan.

When does the loan become due and payable?

A HECM loan must be repaid in full when the last remaining borrower permanently vacates the residence. The loan also becomes due and payable if:
• Borrowers did not pay property taxes or hazard insurance or violate other obligations.
• Borrowers permanently move to a new principal residence.
• The last borrower fails to live in the home for 12 months in a row (for example, the borrower has a 12-month or longer stay in a nursing home).
• The borrowers allow the property to deteriorate and do not make necessary repairs.

Can the homeowner be forced out of their home?

The FHA reverse mortgage loan exists to help homeowners stay in their home. However, the homeowner must reside in the home as their primary residence, pay property taxes and homeowners insurance, and maintain the home. Failure to do so may require the servicer to initiate foreclosure proceedings, per HUD guidelines.

Where can I find additional resources?

• National Council on Aging (NCOA), http://www.ncoa.org
• National Reverse Mortgage Lender’s Association, http://www.reversemortgage.org

Testimonials

Looking for the Best Assistance on Reverse Mortgages?

Our years of experience in the financial sector gives us an edge when advising about reverse mortgage loans. We will provide you with all the benefits you need. We want retirees to have an opportunity to live their final years to the fullest, and that is why we offer this complicated but many-a-time beneficial loan.

We’re Here to Help

We are always available to answer any questions our clients may have about reverse mortgage loans. We are here to serve you each step of the way.

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