Are reverse mortgages safe

Reverse Mortgages with Aloha Mortgage Solutions

Are reverse mortgages safe?

The Top 10 reasons why the HECM Reverse Mortgage has been praised as one of the Safest Senior Programs Ever Created.

  1. Reverse Mortgages never have a monthly mortgage payment!  You cannot default on the loan, and your home can never be foreclosed on for any reason relating to your Reverse Mortgage.
  2. The Reverse Mortgage is 100% federally regulated.  The Department of Housing and Urban Development (HUD) and the Federal Housing Administration (FHA) have designed and regulate all HECM Reverse Mortgages.  They have regulated closing costs, ownership/title rights, and interest rates to protect senior homeowners.  These regulations apply to ALL lenders.
  3. The Reverse Mortgage is a “non-recourse” loan.  This means that the loan is against the value of the home—not against any other assets of your estate.  A Reverse Mortgage can never be “called” and should something happen to lower the value of the home, the federal government protects you with a guarantee that you will never be responsible for the difference.
  4. There is no “time-limit” with a Reverse Mortgage.  The loan lasts as long as the home remains your primary residence.
  5. A Reverse Mortgage counseling session is required with a HUD approved, third party representative. Their job is to educate and inform you of ALL aspects of the Reverse Mortgage program. Counseling sessions are required prior to the appraisal being ordered and the loan closing.
  6. The Reverse Mortgage carries a low interest rate (with a fixed option).  The rate is indexed to the U.S. Treasury bond, NOT the stock market.
  7. The Reverse Mortgage protects your rights as a homeowner.
  8. The Reverse Mortgage has no health requirements, credit minimums or income limits.  Neither your income level nor your credit score have any bearing on qualifying for a Reverse Mortgage.  A physical is not required as there are no health restrictions.  The loan is based on your age, the value of your home and the equity available.
  9. The Reverse Mortgage is very flexible as to how you receive your funds.  You can choose to receive a lump sum, a line of credit, a monthly payment, or any combination of these methods (depending on your equity).  You can use the funds however you choose (a vacation, your grandchildren’s education, home improvements, etc…) and the funds are 100% tax-free!
  10. The Reverse Mortgage can supplement your fixed income during retirement and can assist in any long-term care expenses.  It is an extremely safe way to ensure that increasing costs, a shrinking economy and a longer retirement do not lower your standard of living and the enjoyment of retirement that you have so duly earned!

If you have any questions or concerns feel free to call us!

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Hawaii Reverse Mortgage

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