If you are wondering if you should use us over another company, please take the time to read the section “Why use American Financial”. You’ll be glad you did!
More on Reverse Mortgages
You may have seen commercials on television or heard about them from your friends or maybe you’ve never heard of them before. I’d like to take this opportunity to share with you some of the features and benefits of having a reverse mortgage.
NO PAYMENTS! – Easily the best feature of the reverse mortgage is that you never have to make a monthly mortgage payment. You can even get a monthly check from the bank for the rest of your life!
GOVERNMENT INSURED – Although a bank will most likely manage your loan, it’s the federal government that insures. You never need to worry about the bank going out of business or someone trying to change the terms of the loan.
COUNSELING REQUIREMENT – In order to make sure that this is the right plan for you, the government requires you have an independent third party not for profit organization review your case to be absolutely sure this is the plan for you.
GET CASH BACK – Not only do you not have to ever make payments, if there is enough equity in the home, you may be able to receive cash back at the closing. You can choose to receive the money in one lump sum or have it spread out over a time period you specify.
LIMITED CREDIT CHECK – Your credit score does not matter. A credit check is pulled mostly to see if you have any federal delinquent debt that needs to be paid. Good credit or bad credit does not matter.
INCOME REQUIREMENT – You are still responsible for your property taxes, homeowner’s insurance and any assessments.¬† You need to be able to show that you have enough monthly income to cover these expenses.
Are you still unsure? Then give us a call. We will come to your home and answer all of your questions. We have experienced licensed loan professionals that are available to you from 9am to 10pm 7 days a week. Call us today and get on the path to financial freedom.
Frequently Asked Questions
1) Is this right for me?
Because the reverse mortgage program is so flexible on how it can be used, anyone that qualifies can find a useful purpose for a reverse mortgage loan.
2) Will this¬†cause me problems with the IRS?
NO! Absolutely not. Income received from a reverse mortgage is not considered income. The reverse mortgage program is a government insured program and it’s designed to help people!
3) Does this mean the bank owns my home?
No! You own your home as always. The bank is doing nothing more than making a loan to you. There is no difference regarding ownership when you bought the house and when you get a reverse mortgage.
4) What happens after I die?
The same thing that would happen if you didn’t have a reverse mortgage. Your heirs or those you have willed your property to would get it.
5) How old do I have to be to get a reverse mortgage loan?
The minimum age is 62 to qualify. You may apply for the reverse mortgage when you are 61.5 years old.
6) What if I sell my house?
When you sell your house, you must pay the reverse mortgage loan off. So whatever you sell your home for, you must subtract what you owe and the difference is what you would receive at closing! It works the same way if you had a conventional or FHA forward loan.