What is a Reverse Mortgage
A Reverse Mortgage is a loan that allows a Lehigh Valley property owner to take a portion of the equity that they have accumulated in their property and receive these proceeds in any manner they desire - tax free without impact on Social Security or Medicare.
The money from the Reverse Mortgage can be taken as a lump sum, a monthly stipend, or a combination of both. You can use the funds to enhance your monthly cash-flow or take that dream vacation you've always dreamed about. It is Your Money!
The Tax-free cash options are:
- Immediate cash with a lump sum payment
- Tenure plans provide fixed, monthly cash advances
- Line of credit makes cash available on request
Unlike traditional equity loans, no repayment is required until the home is no longer the principal residence.
Eligibility Requirements for a Reverse Mortgage on Your Lehigh Valley Home:
- Homeowners who are at least 62 years or older
- Eligible properties include single-family homes, condos, townhomes, and 2-4 units
- The home must be owned free and clear or have a small remaining balance (50%) that can be paid with the proceeds from the Reverse Mortgage
- There are no income, employment or credit requirements (a Reverse Mortgage is based on the home)
4 Truths About a Reverse Mortgage:
- Homeowner will never have to move
- Homeowner will never give up title to the house
- Homeowner (or heirs to the estate) will never owe more than the home is worth
- Homeowner will never have to make any monthly payments during the term of the loan (as long as they continue to live in the home)
At anytime, you can decide to sell your Lehigh Valley Home and move on with your life. The only stipulation is that at the time of the home sale, the Reverse Mortgage has to be paid in full.
The BHHS Fox & Roach REALTORS Bethlehem Office has in-house facilities to answer all of your Reverse Mortgage questions. Give Joe a call at 484-241-1641 or email firstname.lastname@example.org for more information.
A Lehigh Valley Lender or Mortgage Company that provides Reverse Mortgages must comply with all FHA Guidelines.