A reverse mortgage is a loan against the equity in your home. Unlike a traditional mortgage or a home equity loan, there are no income or credit requirements with a reverse mortgage. The greatest benefit to you is that you have no monthly payments or interest payments on the money you receive — as long as you continue to use your home as your primary residence. 

Who qualifies?

Unlike a traditional mortgage or home equity loan, there are only three qualifications for a reverse mortgage:

• The youngest borrower must be 62 years old or older.

• You must own your home. (It’s okay if you have set it up as a life estate or a trust.)

• The home must be your primary residence, whether it’s a single family home, a condo or townhouse, a 1-4 unit owner-occupied dwelling, or a manufactured home.

It’s a requirement that all existing debts against your home — such as a mortgage or home equity line or loan — be paid off. However, you may use the reverse mortgage proceeds to satisfy these debts. 

Use the funds the way you choose

You can use the funds from a reverse mortgage any way you want, without having to worry about the effect on your social security, Medicare, or income taxes. We have helped people use reverse mortgages in a range of ways:

• Pay off an existing mortgage

• Make home repairs

• Buy a second home

• Pay for long-term care expenses

• Set up a line of credit for future financial security

• Improve cash flow to maintain current quality of life

You decide how to receive your funds

There are many options for receiving the monies available from a reverse mortgage. TSIT specializes in helping you choose the best program for your current situation. And if your needs change in the future, your payment options can change with them. This is where we can really help you maximize a reverse mortgage for future planning.

• Utilize a lump sum

• Choose a monthly payment option (lifetime or term)

• Establish a line of credit

• Consider a combination plan if all options are needed.

If you are a homeowner in or nearing retirement, and are looking for a way to access the equity you’ve built up in your home, TSIT can help you understand the options and find the reverse mortgage that’s specifically tailored to your financial needs.