Reverse Mortgage

Reverse mortgages are designed to give you access to one of your biggest investments – your home. It can be used as an effective financial tool to add to your retirement plan, give you access to your home’s equity for repairs or improvements, or just eliminate your monthly payment as long as you live there. You owe it yourself to find out if it’s right for you! 

What is a Reverse home loan? 

A reverse mortgage provides senior homeowners with the option to convert part of their equity into tax-free money. Borrowers are not required to sell the home, give up title, or take on a new monthly mortgage payment. The reverse mortgage is aptly named because the payment stream is “reversed.” Instead of making monthly payments to a lender, the lender can make payments to the homeowner. 

It is a negative amortized loan. The balance grows over time since no payment is made to the principal or interest. This can be worrisome to most people, but since the product allows for payment to be made after the borrower permanently leaves the home, it is actually a significant benefit. 

Qualification Requirements

  • At least one borrower on title must be 62 or older 
  • The home must be owner-occupied and an eligible property (exception: HECM for purchase) 
  • Borrower must NOT have had a cash-out refinance on the subject property during the last 12 months 
  • Home must be 
    • Single-family homes, two- to four-unit owner-occupied homes, FHA approved condominiums and manufactured homes are all eligible.
  • Attend Counseling Session
  • Continue to pay property taxes, insurance, any HOA fees & maintain home 
  • Pass Financial Assessment or use a LESA (Life Expectancy Set Aside) 

Click on the files below for more information.  

Have questions? Give us a call! One of our mortgage specialists would be happy to answer all of your questions. 

**Stonebridge Funding Partners LLC is not affiliated with or acting on behalf of or at the direction of FHA, VA, USDA or the Federal Government. 

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