12 Frequently Questions about Reverse Mortgages

12 Frequently Questions about Reverse Mortgages

1)        What is a Reverse Mortgage?

A Reverse Mortgage is a loan for home owners 62 years and older, insured by FHA (Federal Housing Administration).  It allows you to convert part of the equity in your property into cash to use any way you want.

2)        What am I responsible for?

Pay your property taxes and home owner insurance (and flood insurance, if in a flood zone), keep it in good condition and use it as your principal residence.

3)        Am I eligible if I am not yet 62 years old?

If you are married, only of you must be 62 years old.  If the owners are family and/or friends, all must be 62 years and older.

4)        Can I sell my property at any time?

Yes, you can.  A reverse mortgage has NO prepayment penalty.   You can sell your house or refinance it.

5)        What types of properties qualify for a Reverse Mortgage?

Single family houses, duplex, triplex and fourplex.  A townhouse must have Lot and Block in the legal description.  If a condo, the association must be approved by FHA (Federal Housing Administration).

6)        Is good credit required for a Reverse Mortgage?

The Reverse Mortgage underwriting is NOT credit score driven.  If a borrower has credit difficulties, often a good lender will accept a letter of explanation.  The death of a spouse, loss of income, and an illness can temporarily ruin a person’s credit.  The HECM or Reverse Mortgage is here to offer a hand up and is collateral based and not so much income and credit sensitive since there is no monthly payment required.

7)        Are Social Security and Medicare benefits affected?

No.  You will continue receiving the same benefits

8)        Do I qualify if my house fully paid?

Yes.  If your house is paid in full you can receive the maximum amount based on your age or the age of the youngest if you are married.

9)         What happens when I die?

When one of the two dies, the survivor can continue living in the property until the last day of his or her life.   When the survivor dies, then, the property passes on to their designated heirs, who have 12 months to refinance the debt or sell the property, payoff the debt (Reverse Mortgage) and receive the equity, if any.

10)        What are the requirements for a pre-qualification?

Call Otto A. Gonzalez at (305)909-0809, any day of the week to receive basic information and the available benefits.

11)        Do I have to pay taxes on the money received from a Reverse Mortgage?

No, the money you receive is the equity on your property.  However, we suggest you consult with your tax advisor.

12)        Who is Sun Capital Mortgage, Inc.?

Sun Capital Mortgage, Inc. is located at 9240 SW 72nd Street, Suite 204, Miami, FL 33173.  Our specialty is Reverse Mortgages.   You can contact Otto A. Gonzalez, Reverse Mortgage Specialist, with over 33 years of experience.   Call (305)909-0809 Direct, or (305)521-9100 Ext.701 Office.

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