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All About Reverse Mortgages

What is a reverse mortgage?

Take control of your security. Keep your financial independence. With a Federal Housing Administration (FHA-insured/HUD-assured) reverse mortgage, you have a powerful financial tool to help increase your fixed retirement income. Did you know that because you've built equity in your home, you can now access it without having to sell? Absolutely no repayment is required as long as you continue to use your home as your primary residence in Georgia.

Step One: Eligibility

You've spent your life working hard to build equity into your home. Now it's time for you to let your home work hard for you. Reverse mortgages can turn financial struggle into financial freedom and independence.
The primary requirements of a reverse mortgage are that you must be at least 62 years old and occupy the home as your primary residence. Your age and the value of the home are also very important factors. This determines the amount of funds that you can receive.

Step Two: The Application Process

Once you've decided on a reverse mortgage, your loan- and greater financial independence is only a few steps away. The application consists of the following stages.

Completing the Application- I will come to your home (or will FedEx everything, if you'd rather) and guide you through each step of the process. Pertinent information and documents are collected and loan parameters such as the best program for you are then determined.
Mandatory Counseling- I will provide several national and local Georgia counseling agencies for you to choose from. You may do this in person or over the phone, whichever you prefer. Some agencies charge a fee and some occasionally are free of charge because of government grants. You will receive contact information for both. Upon completion of your counseling session, you will actually receive a certificate of completion from the HUD-approved counselor.
The Closing- Following approval us receiving a clear to close for your reverse mortgage, the closing date is set at your convenience. We will be glad to arrange the closing to take place in the comfort of your own home with an in-home closing attorney at no extra charge.

Step Three: Paying Back the Mortgage

It's very simple. As long as you are living in your Georgia home, you are not required to pay the loan back. Repayment is not necessary until the last borrower no longer occupies the house. When this occurs, you or your heirs have two options. The house can be sold and the loan repaid with the proceeds. Or, you or your heirs can keep the house and repay the loan with your own funds.
You are never responsible for paying back more than the fair market value of your home. And that's the beauty of reverse mortgages- they are a true non-recourse loan!

Your Responsibilities Following the Closing:

Georgia Reverse Mortgage homeowners must continue to do what they have always done and still pay their homeowner’s insurance and property taxes during the life of the loan. It is also the borrower’s responsibility to keep up with repairs to maintain the value of their home. if a borrower fails to adhere to these normal obligations, it may become immediate cause for the loan to become due and payable in full.

Does my home qualify for a reverse mortgage?

First of all, your residence must meet HUD standards. This will be determined by an FHA-approved appraiser. The cost of the appraisal is generally between $450-$500. This is the only out-of-pocket expense you will have. The reverse mortgage must be the only mortgage or lien held against the residence. That means that if there is a current mortgage on the property, it must be paid off with the proceeds from the reverse mortgage. Sometimes it makes sense to add your own funds to the reverse mortgage funds to be able to pay off any and all liens. Many times, that money is quickly recovered because of the fact that your mortgage payment (which is mostly interest anyway) is no longer having to be paid every month. We can help you determine if this scenario could be a good financial move for you with some easy-to-understand calculations.

Homes That Qualify for a HUD Reverse Mortgage:

Single Family One-Unit Residences
2-4 Unit Owner-Occupied Residences
HUD-Approved Condominiums
HUD-Approved Planned Unit Developments
Some Manufactured Homes

What are my Reverse Mortgage Options in Georgia?

HECM Fixed Rate (offers more money but funds must be taken at closing)
HECM Saver (offers less money but with smaller cost)
HECM ARM (very flexible; offers 4 draw options):