top of page
Storytime with Grandpa

Reverse Mortgage

This is a loan program is designed for individuals ages 62-years or older who have established equity in their home.  This allows you to turn your home equity into tax-free** cash without having to make monthly mortgage payments (must continue to pay property taxes and home owners insurance). Allow our team to work with you, your family, financial advisor to see if this option would be a good fit for you.

Get Started

Benefits of Reverse Mortgages

No Monthly Mortgage Payment (Borrower must still pay taxes, insurance, and maintain the home)
Potential Cash Flow
Access to Equity/Cash in your home to consolidate bills
Potential Line of Credit Established for Access to Cash as Needed Down the Road

Common Myths 

01.

You immediately sign over ownership to your home.

You retain title to your home as long as you meet the loan guidelines and requirements such as: maintaining the property, paying all property charges such as property taxes, homeowners insurance, flood insurance, and homeowners association dues (if applicable), and avoiding extended absences from the home longer than six months.¹

03.

Your children will be responsible for repaying the loan when you die

 A reverse mortgage is a non-recourse loan, meaning that the lender can only be repaid from the proceeds of the sale of the home and not more than the value of the home. That means even if the home decreases greatly in value, the maximum repayment amount can only be up to the value of the home. While your heirs will not be responsible for the loan repayment, they will still have the option to refinance the loan to purchase it for themselves.

05.

You must have your first mortgage paid off before you can qualify for a reverse mortgage.

While any debt on your home’s title must be paid off at closing and you must have adequate equity in the property, it is not required that you own your home “free and clear” before getting a reverse mortgage.

02.

If you take out a reverse mortgage loan your children won’t be left with any of the home equity.

While the amount of equity typically decreases over time with a reverse mortgage, it doesn’t mean there will be no equity left when the last borrower dies. There are several factors that go into how much equity will be left, such as home appreciation, length of the loan, and optional monthly payments. There can still be equity left for your children.

04.

A reverse mortgage requires that you make monthly mortgage payments.

While you can choose to make mortgage payments, they are not required with a reverse mortgage. The borrower is still responsible to maintain the property, pay property taxes, homeowners insurance, flood insurance, and homeowners association dues (if applicable).¹

06.

You are not allowed to sell your home if you have a reverse mortgage.

You can sell your home if you wish and – just like any other mortgage loan – you must pay off the reverse mortgage at closing. There are also no prepayment penalties if you choose to pay off your loan early or make loan payments.

(1) There are some circumstances that will cause the loan to mature and the balance to become due and payable. The borrower is still responsible for paying property taxes, homeowner’s insurance and maintaining the property to HUD standards. Failure to do so could make the loan due and payable. Credit is subject to age, income standards, credit history, and property qualifications. Program rates, fees, terms, and conditions are not available in all states and subject to change.

(2) Borrowers should seek professional tax advice regarding retirement mortgage proceeds.

Direct: 704-237-8200

  • Instagram
  • Youtube
  • Facebook
  • LinkedIn

Copyright©2023 Fairway Independent Mortgage Corporation (“Fairway”) NMLS#2289. 4750 S. Biltmore Lane, Madison, WI 53718, 1-866-912-4800. All rights reserved. Fairway is not affiliated with any government agencies. These materials are not from HUD or FHA and were not approved by HUD or a government agency. Reverse mortgage borrowers are required to obtain an eligibility certificate by receiving counseling sessions with a HUD-approved agency. Youngest borrower must be at least 62 years old. Your monthly reverse mortgage advances may affect your eligibility for some other programs. At the conclusion of the term of the reverse mortgage loan contract, some or all of the equity in the property that is the subject of the reverse mortgage no longer belongs to you and you may need to sell or transfer the property to repay the proceeds of the reverse mortgage with interest from your assets. We will charge an origination fee, a mortgage insurance premium, closing costs or servicing fees for the reverse mortgage, all or any of which we will add to the balance of the reverse mortgage loan. The balance of the reverse mortgage loan grows over time and interest will be charged on the outstanding loan balance. You retain title to the property that is the subject of the reverse mortgage until you sell or transfer the property and you are therefore responsible for paying property taxes, insurance, and maintenance and related taxes. Failing to pay these amounts may cause the reverse mortgage loan to become due immediately and may subject the property to a tax lien or other encumbrance or to possible foreclosure. Interest on reverse mortgage is not deductible to your income tax return until you repay all or part of the reverse mortgage loan. This is not an offer to enter into an agreement. Not all customers will qualify. Information, rates and programs are subject to change without notice. All products are subject to credit and property approval. Other restrictions and limitations may apply. Equal Housing Opportunity. Licensed by the Department of Financial Protection and Innovation under the California Residential Mortgage Lending Act, License No 41DBO-78367. Licensed by the Department of Financial Protection and Innovation under the California Financing Law, NMLS #2289. Loans made or arranged pursuant to a California Residential Mortgage Lending Act License. Fairway Independent Mortgage Corporation NMLS ID #2289 (www.nmlsconsumeraccess.org) MA Mortgage Broker and Lender License #MC2289.Licensed In: NC, SC, PA, TN, TX, VA, FL, MD, CA, WA, OR, MA, CT, OH
SVP Area Manager, Ken Land NMLS# 108157 | 704-541-1171
http://bit.ly/FIMCDisclosure
Complaints may be directed to (877) 699-0353 or Email us: customerservice@fairwaymc.com
Privacy Policy | Terms of Use

fheo75.bmp
images - NMLS.png
bottom of page