Reverse Mortgage 

Are you age 62 or older? This may be a loan for you! A reverse mortgage lets you borrow against your home equity. It is called a “reverse” mortgage because instead of making payments to the lender, you receive money from the lender. The money you receive, and the interest charged on the loan, increases the balance of your loan each month. (Most reverse mortgages today are called HECMs, short for Home Equity Conversion Mortgage.)

Reverse mortgage requirements:

5

You're 62 years old or older

5

You must own the home outright or have a low balance owed on your current mortgage

5

The home is your primary or principal residence

5

You have to get HUD counseling before incurring any cost associated with the loan

Reverse mortgage features:

5

Borrowers maintain title and ownership

5

Proceeds are not subject to personal income taxation

Borrowers should seek tax advice on how proceeds may affect government needs–based programs such as Medicaid and Medi–Cal.
5

Give you access to your home equity

5

Choose how you receive payments

Lump sum, monthly payments or line of credit (or all three)

5

Lump sum, monthly payments or line of credit

Reverse mortgage FAQ’s:

5

Can I get a reverse mortgage if I have an existing mortgage?

YES. If your house isn’t paid off, the proceeds you receive from the reverse mortgage must first be used to pay off any existing mortgage. This is the most common reason most homeowners 62 years and older take out a reverse mortgage.

5

If I take out a reverse mortgage, will the lender own my home?

NO. Homeowners still retain title and ownership to their homes during the life of the loan, and can choose to sell the home at any time. As long as the borrower continues to live in and maintain the home and property taxes and homeowners insurance are paid, the loan cannot be called due.

5

Are there are restrictions on how reverse mortgage proceeds may be used?

NO. There are no restrictions. The cash proceeds from the reverse mortgage can be used for virtually any purpose and borrowers should be cautious of lenders attempting to cross sell other products. Many seniors have used reverse mortgages to pay off debt, help their kids, make ends meet or to have a financial reserve.

5

Do only low-income seniors get reverse mortgages?

NO. Although some seniors may have a greater need than others for the monthly proceeds or lump sum funds reverse mortgages offer, most simply prefer to be free of monthly mortgage payments. Without monthly mortgage payments, many homeowners find they can maintain their existing quality of life and build their savings to help with future expenses. A growing number of people who have no immediate need are taking out these loans so that they have a financial cushion for future expenses.

5

If I outlive my life expectancy, will the lender evict me?

NO. Reverse mortgage lenders put no time limit on how long the borrower(s) can stay in their homes. Since homeowners still own the property, lenders cannot evict them as long as the borrower continues to live in and maintain the home, and property taxes and homeowners insurance are paid.

Is a reverse mortgage right for you?

If you’re over the age of 62 and own your home or have large amount of equity in your home without selling it, a reverse mortgage might be a good option for you. Maybe you’re ready to retire and want access to a growing line of credit to travel. A reverse mortgage allows you access to the equity in your home while you continue to live in the home as your primary residence.

5

You're over the age of 62 and access to your home equity without selling the home

5

Proceeds are not subject to personal income taxation

Borrowers should seek tax advice on how proceeds may affect government needs–based programs such as Medicaid and Medi–Cal.
5

Allows access to equity

5

Choose how you receive payments

Lump sum, monthly payments or line of credit

Why choose SecurityNational Mortgage for your reverse mortgage?

We’re experts with deep experience in underwriting, processing, and closing on reverse mortgages. Let our professionals guide you through the experience!

A reverse mortgage, available to borrower(s) age 62 or over, is a loan based upon the current equity in a borrower’s primary residence, with funds disbursed in one lump sum, or over regularly scheduled intervals. As long as the borrower occupies the property as their principal residence, there are no required loan payments, with the loan balance due and payable upon sale, or when the property is otherwise vacated. The borrower DOES RETAIN the responsibility to maintain the property to FHA standards, and remain current on ALL taxes (such as property), insurance (such as hazard), dues (such as homeowner association), and other such costs, as these are separate from the reverse mortgage itself, and WILL NOT be paid by the lender. Borrowers must complete counseling with a government certified counselor before applying. Consult a tax professional for potential tax consequences, and a benefits coordinator for questions about Social Security or Medicare Benefits.

This is not a commitment to make a loan, nor should it be construed as lending advice. Loans are subject to borrower qualifications, including income, property evaluation, sufficient equity in the home to meet LTV requirements, and final credit approval. Approvals are subject to underwriting guidelines, interest rates, and program guidelines, and are subject to change without notice based on applicant’s eligibility and market conditions. Refinancing an existing loan may result in total finance charges being higher over life of loan. Reduction in payments may reflect longer loan term. Terms of the loan may be subject to payment of points and fees by the applicant. SecurityNational Mortgage Company is an Equal Housing Lender NMLS# 3116.

Still need help?

We're great with directions!

No really, ask us for directions. Our mortgage professionals are waiting to help answer any questions or concerns you have as you begin your journey home.