Reverse Mortgage

In a word, a reverse mortgage is a loan a homeowner aged 62 or older with considerable home equity can borrow against the home's value and receive funds as a lump sum, fixed monthly payment, or line of credit.

What is a Reverse Mortgage?

A reverse mortgage loan, like a traditional mortgage, allows homeowners to borrow money using their home as security for the loan. Also, like a conventional mortgage, the title to your home remains in your name when you take out a reverse mortgage loan. However, unlike a traditional mortgage, borrowers don't make monthly mortgage payments with a reverse mortgage loan. Instead, the loan is repaid when the borrower no longer resides in the home. Interest and fees are added to the loan balance each month, and the balance grows. With a reverse mortgage loan, homeowners must pay property taxes and homeowners insurance, use the property as their principal residence, and keep their house in good condition.

Click & Learn

The Loss of Ownership

They're Expensive

The Loss Of Inheritance

The Loss of Benefits

A Last Resort

The Loss of Ownership

Risk Factor

The lender or the government will take my home.

Solution

That’s just plain false. With a reverse mortgage, you or your estate continue to retain control of your home’s title.

They're Expensive

Risk Factor

Reverse mortgages can be expensive.

Solution

Reverse mortgages and FHA loans have similar interest rates. However, they may vary from lender to lender.

The Loss Of Inheritance

Risk Factor

One common pitfall of reverse mortgages is that children and loved ones will lose all their inheritance.

Solution

When the loan reaches maturity in the future, your heirs may choose to sell the home to repay it, allowing them to inherit all the remaining equity of your home.

The Loss of Benefits

Risk Factor

Losing Medicare, social security, and pension benefits is a reverse mortgage pitfall.

Solution

Your Medicare, social security, and pension benefits remain unaffected regardless of whether or not you become a reverse mortgage borrower.

A Last Resort

Risk Factor

Reverse mortgages are a loan of last resort.

Solution

Most people use a reverse mortgage line of credit as a safety net to draw on in case of emergencies.

Who is eligible for a Reverse Mortgage?

To be eligible for a Reverse Mortgage, the applicant must be 62 years or older, own the property, and occupy it as their main residence. In addition, they must maintain the home with required repairs, property taxes, and insurance. Also, the property does need to satisfy specific FHA property standards. Finally, the applicant must participate in a reverse mortgage counseling session (this can be done over the phone or in person.)

Borrower Requirements and Responsibilities

Age qualification: All borrowers listed on the title must be 62 (some private-label reverse mortgages go down to age 55). If one spouse is under 62, they might be able to get a reverse mortgage. However, the loan officer must collect additional information upfront.
Primary lien: A reverse mortgage must be the preliminary lien on the home. Any current mortgage must be paid off using the proceeds from the reverse mortgage.
Occupancy requirements: The property used as collateral for the reverse mortgage must be the main residence. Vacation homes and investor properties do not qualify.
Taxes and Insurance: Borrowers must be up-to-date on real estate taxes, homeowners insurance, and other mandatory obligations like condominium fees.
Property Condition: Borrowers are responsible for completing the required repairs and maintaining the property's condition.
Conveyance of the mortgaged property to the estate or heir after the mortgagor's death: The estate or heirs may satisfy the reverse mortgage debt by paying the lesser mortgage balance or 95% of the current appraised value of the property. This is done when a reverse mortgage becomes due and payable upon the death of the last surviving borrower.

Pioneer Mortgage Funding Inc.

We bring a customized, unique approach to mortgages. Our lending solutions use the perfect hybrid of human-driven insights and technical prowess to process loans faster and significantly reduce costs.

PHONE

(813) 857-6560

E-MAIL

ppritt@pmfmortgage.com

ADDRESS

8270 Woodland Center Blvd
Tampa FL 33614

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Website Disclaimer :

Effective Date: 9/1/2021
All loan approvals are conditional, not guaranteed, and subject to lender review of all information. A loan is conditionally approved when the lender has issued an approval in writing, but until all conditions are met, a loan cannot be funded. Specified rates may not be available for all borrowers. interest rates, and program guidelines, and are subject to change without notice based on applicant’s eligibility and market conditions. Pioneer Mortgage Funding Inc. is an Equal Opportunity Mortgage Broker headquartered in Tampa, Florida. This licensee is performing acts for which a mortgage broker license is required. Pioneer Mortgage Funding Inc. is licensed by the Florida Office of Financial Regulation, NMLS# 1936558. Pioneer Mortgage Funding Inc. is approved to originate Conventional, FHA, VA, and USDA loans, and has the ability to broker such loans to Conventional, FHA, VA, and USDA approved lenders. Pioneer Mortgage Funding Inc. is not acting on behalf of or at the direction of HUD/FHA or the VA.

Reverse Mortgage