You’ve worked hard all your life. Now it’s time for all the love and money you’ve invested into your home to start paying you back. With our Reverse Mortgage service, you can use the funds as you want and enjoy a lifetime of independence and security at home.

A Reverse Mortgage is a federally insured financial tool that allows qualified senior homeowners age 62+ to convert a portion of their home equity into a stable source of supplemental cash flow. It helps deliver the financial security you need to stay at home and live independently—without having to sell your house, give up the title, or make monthly mortgage payments.

You also have the freedom to use the money you receive however you want—there are no limitations:

• Supplement your retirement income
• Pay off an existing mortgage and eliminate debt
• Pay for medical care, prescription drugs and in-home care
• Cover large or unexpected expenses
• Make home improvements and repairs
• Travel to visit family and friends or vacations
• Contribute to your grandchildren’s college education
• Live a more comfortable lifestyle

What is a Reverse Mortgage?

A Reverse Mortgage is a federally insured financial tool that allows senior homeowners age 62 and older to access a portion of their home equity and convert it into tax-free retirement income. It gives you the financial security and supplemental retirement cash flow to stay at home and live independently—without having to sell your home, give up the title, or make monthly mortgage payments.

It's called a Reverse Mortgage because unlike a forward mortgage where you make payments, a Reverse Mortgage actually pays you. Flexible and safe, you make no Reverse Mortgage payments and will maintain the title for as long as you live in your home. When the loan is due, the amount you or your loved one’s owe will not be more than the appraised value of the home. And any equity that remains in your home remains yours—not the bank's.

Government Safeguards

The federal government has put in place several safeguards in the reverse mortgage program to protect and shield seniors from predatory lending practices. Chief among them is the mandate that a third-party counseling session must occur with an independent HUD-approved counselor before an application can be processed.

It’s Easy To Find Peace Of Mind

A Reverse Mortgage will not affect your Social Security or Medicare benefits. And since the money you receive is not considered income, it is tax-free.

• You don't need any income to qualify for a Reverse Mortgage
• You make no monthly payments
• You can receive additional monthly income
• You are fully insured and protected against owing more than the value of your home
• And there are no income, employment, or credit score restrictions

Established by Congress over twenty years ago, reverse mortgages are still a fairly new family of financial products. Though most seniors and retirees are familiar with reverse mortgages, a great many myths still exist that cloud the important and relevant facts. The list below will help you dispel the common misconceptions about reverse mortgages.

Common Reverse Mortgage Misconceptions:

The second you get a Reverse Mortgage; the bank owns your home.
False: You will maintain the title to your home for as long as you live in it. You cannot be forced out of your home as long as both property taxes and insurance is paid and the home is maintained in reasonable living condition. You can even use your Reverse Mortgage to pay for these expenses.

Reverse Mortgages are very risky.
False: Reverse Mortgages are widely regarded as a safe financial product. The federal government has placed strict regulations and safeguards on Reverse Mortgages to protect seniors. Additionally, the National Reverse Mortgage Lenders Association (NRMLA) was created to develop and promote best practices in the Reverse Mortgage industry.
You also have the power to stop the loan process at anytime once you begin your application.

Your home must be paid off to qualify for a Reverse Mortgage.
False: As long as there is sufficient equity in your home, you may be eligible for a Reverse Mortgage, even if you still owe money on your existing mortgage. However, the existing mortgage balance must be paid off at closing. But you can use the funds from your Reverse Mortgage, or another source to pay off that balance.

You could end up owing more than your home is worth.
False: Reverse Mortgages are structured with safeguards so that you or your estate can never owe more than the appraised value of the home. As well, the Federal Housing Administration, an arm of the U.S. Department of Housing and Urban Development (HUD), insures HECM products.

Reverse Mortgages are taxable and will affect your Social Security and Medicare.
False: Reverse Mortgage proceeds are not taxable because the IRS does not consider them as income, but rather, a loan. In addition, a Reverse Mortgage will generally not affect regular Social Security payments or Medicare benefits. However, certain need-based government aid programs, such as Supplemental Security Income (SSI) and Medicaid, may be affected. We recommend you consult with your Medicare, Social Security or Medicaid program administrator to determine the specific rules.

The bank takes your home when your Reverse Mortgage becomes due.
False: You are in control of your home and will maintain the title, not the bank or lender. A Reverse Mortgage functions like any other mortgage with a lien placed on the property. When you no longer live in the home, the loan becomes due and must be paid. Generally, you can pay off the loan balance two ways: You or your heirs can sell the home and use the proceeds or use other sources of funding.

There are restrictions on how you can use the money.
False: You can use your Reverse Mortgage funds for however you see fit—there are no limitations. However, we do recommend that you speak to a financial advisor.

Your family hopes to someday inherit your home or they don’t feel comfortable with a Reverse Mortgage.
False: We encourage you to talk to your family and heirs and ask them to research Reverse Mortgages with you. Many baby boomers are faced with planning for their own retirement and paying for their children’s education so they are happy that their parents have a financial solution available to help them live more independently and financially secure.