QUESTIONS & ANSWERS ABOUT A
REVERSE MORTGAGE

Reverse Mortgages are becoming popular in America. The U.S. Department of Housing and Urban Development (HUD) created one of the first. HUD's Reverse Mortgage is a federally-insured private loan, and it's a safe plan that can give older Americans greater financial security. Many seniors use it to supplement social security, meet unexpected medical expenses, make home improvements, and more.

You can receive free information about reverse mortgages by calling Senior Loan Experts locally at 407-936-2400 or toll-free 1-800-979-0775. Since your home is probably your largestsingle investment, it's smart to know more about reverse mortgages, and decide if one is right for you!

 1. What is a reverse mortgage? 
 2. Can I qualify for a HUD reverse mortgage?
 3. Can I apply if I didn't buy my present house with FHA mortgage insurance?
 4. What types of homes are eligible?
 5. What's the difference between a reverse mortgage and a bank home  equity loan?
 6. Can the lender take my home away if I outlive the loan?
 7. Will I still have an estate that I can leave to my heirs?
 8. How much money can I get from my home?
 9. Should I use an estate planning service to find a reverse mortgage?
10. How do I receive my payments?
11. How about my children and my heirs?
12. Can I be forced to sell my property if the value declines?
13. Will I lose ownership of my home?
14. Who is entitled to my home's appreciation?
15. What if I decide to sell my Home?
16. I Might be Interested, How much can I Afford?
17. What are the Tax Ramifications if you take the CASH?
18. Still wondering, is a Reverse Mortgage the Right Choice for You?
19. How has a Reverse Mortgage solved the Needs & Wants of Real People in Real Situations!
20. How about you? Do you have a Dream?
21. The Bottom Line! About me & How I know I can Help You!
22. So, What Can You do Now!

1. What is a reverse mortgage?
A reverse mortgage is a special type of home loan that lets a homeowner convert a portion of the equity in his or her home into cash. The equity built up over years of home mortgage payments can be paid to you. But unlike a traditional home equity loan or second mortgage, no repayment is required until the borrower(s) no longer use the home as their principal residence. HUD's reverse mortgage provides these benefits,
and it is federally-insured as well.

2. Can I qualify for a HUD reverse mortgage?
To be eligible for a HUD reverse mortgage, HUD's Federal Housing Administration (FHA) requires that the borrower is a homeowner, 62 years of age or older; own your home outright, or have a low mortgage balance that can be paid off at the closing with proceeds from the reverse loan; and must live in the home. You are further required to receive consumer information from HUD-approved counseling sources prior to obtaining the loan. We will be happy to provide you with a list of the names and telephone numbers of a HUD-approved counseling agency within your area.

3. Can I apply if I didn't buy my present house with FHA mortgage insurance?
Yes. While your property must meet HUD minimum property standards, it doesn't matter if you didn't buy it with an FHA-insured mortgage. Your new HUD reverse mortgage will be a new FHA-insured mortgage loan.

4. What types of homes are eligible?
Your home must be a single family dwelling or a two-to-four unit property that you own and occupy. Townhouses, detached homes, units in condominiums and some manufactured homes are eligible. Condominiums must be FHA-approved. It is possible for condominiums to qualify under the Spot Loan program. The home must be in reasonable condition, and must meet HUD minimum property standards. In some cases, home repairs can be made after the closing of a reverse mortgage.

5. What's the difference between a reverse mortgage and a bank home equity loan?
With a traditional second mortgage, or a home equity line of credit, you must have sufficient income versus debt ratio to qualify for the loan, and you are required to make monthly mortgage payments. The reverse mortgage is different in that it pays you, and is available regardless of your current income. The amount you can borrow depends on your age, the current interest rate, other loan fees, and the appraised value of your home or FHA's mortgage limits for your area, whichever is less. Generally, the more valuable your home is, the older you are, the lower the interest, the more you can borrow. You don't make payments, because the loan is not due as long as the house is your principal residence. Like all homeowners, you still are required to pay your real estate taxes and other conventional payments like utilities, but with an FHA-insured HUD Reverse Mortgage, you cannot be foreclosed or forced to vacate your house because you "missed your mortgage payment."

6. Can the lender take my home away if I outlive the loan?
No! Nor is the loan due. You do not need to repay the loan as long as you or one of the borrowers continues to live in the house and keeps the taxes and insurance current. You can never owe more than your home's value.

7. Will I still have an estate that I can leave to my heirs?
When you sell your home or no longer use it for your primary residence, you or your estate will repay the cash you received from the reverse mortgage, plus interest and other fees, to the lender. The remaining equity in your home, if any, belongs to you or to your heirs. None of your other assets will be affected by HUD's reverse mortgage loan. This debt will never be passed along to the estate or heirs.

8. How much money can I get from my home?
The amount you can borrow depends on your age, the current interest rate, other loan fees and the appraised value of your home or FHA's mortgage limits for your area, whichever is less. Generally, the more valuable your home is, the older you are, the lower the interest, the more you can borrow.

10. How do I receive my payments?
You have five options:
• Tenure - equal monthly payments as long as at least one borrower lives and  continues to occupy the property as a principal residence.
• Term - equal monthly payments for a fixed period of months selected.
• Line of Credit - unscheduled payments or in installments, at times and in amounts of borrower's choosing until the line of credit is exhausted.
• Modified Tenure - combination of line of credit with monthly payments for as long as the borrower remains in the home.
• Modified Term - combination of line of credit with monthly payments for a fixed period of months selected by the borrower.

11. How about my children and my heirs?
You, your heirs, or children will never owe more than your property is worth. This is called a non-recourse loan. So, if your loan value ever exceeds the value of your home, no additional claim can be made other than the property value.

12. Can I be forced to sell my property if the value decline?
Simply put NO! The lender only wants the remaining loan balance owed on the house when you permanently are no longer a principal resident. You can never be forced to move or sell.

13. Will I Lose Ownership of My Home?
No, you will maintain full ownership & title to your home, as long as you are the permanent resident.

14. Who is entitled to my homes appreciation?
If your home goes up in value, simply put you get the benefits of the appreciation. The lender only wants the monies owed on your home once you no longer permanently occupy your home.

15. What if I decide to sell my Home?
You can sell your home anytime you want. There is no prepayment penalty on the HECM reverse mortgage. Once you decide to sell, you would still have to satisfy the payoff on the loan and any proceeds left over will belong to you or your heirs.

16. I Might be Interested How much can I Afford?
Reverse mortgages loan amounts are tied to your age, your property, the appraised value & prevailing interest rate at the time you apply.

You paid off your mortgage & you’re saying to yourself you could use some cash. You have some stock, but if you draw the cash from the stock, the stock is gone! The interest income or dividend is gone! The reverse mortgage is the perfect alternative. Not only do you get the cash, but you get to keep the stock! So if your financial requirement is for a lump sum of cash or a monthly amount, or even a line of credit, the reverse mortgage is a perfect choice.

The explosive value in housing values have created a major asset for your use and even when you take a reverse mortgage, your house will continue to gain in value via appreciation. I approximate around 4% which is way below the national average for the past 5 years.

17. What are the Tax Ramifications if you take the CASH?
The money that is received from you is not a taxable to you. The interest that you accumulate of the loan is deductible, but not until the loan is paid off.

18. Still wondering, Is a Reverse Mortgage the Right Choice for You?
I have one client who said a reverse mortgage is more like a ‘full circle’ mortgage. You worked hard to build equity in your home, now you are going to convert that equity into CASH. Full circle, when you work hard, good things come back to you.

19. How has a Reverse Mortgage solving the Needs & Wants of Real People in Real Situations!
Seniors throughout the country are discovering the benefits of a Reverse Mortgage.

• How about a Newark widowed senior, who got a reverse mortgage to help put her daughter through school.

• Or the Newark Senior couple, who received cash out to add an addition to their home, made remodeling adjustments to assist them within the home, and put all their everyday living accessible on the first floor.

• A Wilmington couple wanted to get rid of their nagging credit card debt and hold the title to their auto now, rather than 4 years from now. They also wanted some cash to travel and a monthly supplemental income to add to their additional cash flow.

• Inn Bear, a senior dreamed of owing his own luxury RV, so he could climb aboard and see the country, and while gone, not have to worry about his mortgage payments or other debts.

• In the nick of time, a reverse mortgage saved a Wilmington couple from foreclosure. Their cash flow just couldn’t support the mortgage and their other debt. Luckily, they had an untapped resource right in front of them and were able to do a reverse mortgage, save their house, and still stay in their home. They were even able to make some needed repairs to their house and make it a comfortable place to enjoy their lives again. Life is good again.

• In search of a Dream, Swimming with the Dolphins? Did you ever say to yourself, I want to do this or that, and before you know it, time gets away, the money is not there, and well, it just doesn’t happen? Well a Smyrna senior found the time and the money to fulfill her dream. She also got a new roof and wiped her slate clean by paying off all her credit cards and got to swim with the dolphins.

20. How about you? Do you have a Dream?
Here are some of the things you could do with a reverse mortgage:
• Eliminate a monthly mortgage payment
• Supplement income on a monthly basis
• Line of Credit
• Cash for remodeling or repairs
• Payoff debt, credit cards, autos
• Buy a car
• Education for yourself or family member
• Start a business
• Long term care
• Medical expense
• Charitable Giving
• Funding a Trust
• __________________________(Your Dream or Need)

21. The Bottom Line! About me & How I know I can Help You!
I’ve have owned my own business for the past 30 years, raised 3 children (1 out of college), owned 3 houses, in the same one now for 22 years. PHD from the school of hard knocks, love my family, and love my job, I’m really good at what I do. I’ve closed many loans and discovered the reverse mortgage loan product, while investigating how to help one of my clients. I was so impressed with the many benefits. I decided to make Reverse Mortgages my mission. Doing reverse mortgages is a ‘Mr. Feel Good.’ No joke, when you do something that works for people and improve their quality of life, it ain’t all bad.

22. So, What Can You do Now!
Well, if you are still unsure, don’t call me. But, if you are the least bit interested, call me. If you’d rather not talk to me, you can call locally at 407-936-2400 or toll-free 1-800-979-0775 and get my Free Report on “The 10 Top Things You should Know if You’re Interested in a Reverse Mortgage.”, and as an added Bonus, my free video “All About Reverse Mortgages”, in which I will explain to you in easy to understand language all the ins and outs of a reverse mortgage.

Not to stop there! If you want me to personally come to see you, I will. If you want a family member or friend to be there with you, please ask them to be there with you. But, if you don’t call me, I can’t help!

Still not sure, but do want to speak to a counselor, then just give me a call & I’ll make sure you get all the local contact information, FREE so you can arrange for your free counseling session.

I guess the question is, will things be different next month than they are now if you do nothing? Why not take advantage of what you already have and utilize you financial investment to the fullest extent?

My contact information is listed below for your convenience. I look forward to speaking with you to discuss in detail the programs and to see if a Reverse Mortgage makes sense for you.

Improving Lives for Our Seniors,

For more information please use the contact form or call us locally at
407-936-2400 or Toll Free at 800-979-0775.