How the Program Works
A reverse mortgage allows homeowners who are 62 years or older to access a portion of the equity in their homes without having a monthly mortgage loan payment.
- No loan repayment is required as long as the borrower owns and lives in the home.*
- There are limited income, asset, and credit requirements
- The homeowner retains title and ownership of the home
- Cash advances can be used for any purpose
- Any homeowner who is 62 years or older
- You must be living in the home as your primary residence
The amount you can get depends on:
- Youngest borrower’s age**
- The home value
- Current interest rates
You can choose how to receive your money.
You can receive it:
- As a Lump Sum at the closing of the loan
- As a Monthly Cash Advance
- As a Line of Credit
Any combination of the above three options
When the home is sold or when the last surviving spouse or borrower dies or moves away for 12 months in a row.
- Pay off current mortgage or debts
- Property taxes/ home insurance
- Home repairs
- Everyday living expenses
- Retirement Planning
- Medical expenses or in-home care
- Reverse mortgages are insured by the U.S. Dept. of HUD
- Payments to borrowers are guaranteed by the U.S. government
- They are available through HUD Approved lenders
- Independent HUD counseling is required prior to application
- Does not affect Social Security or Medicare benefits***.
First you must obtain a counseling certificate from a HUD-approved counseling agency (we can supply you with a list of national and local agencies from which you can choose). After receiving your counseling certificate, you can make an application with a 1st Nations Reverse Mortgage Specialist. Under normal circumstances, the entire process should take approximately 30 – 45 days.
If you would like more information about reverse mortgages, or if you would like an appointment to make an application call: (800) 720-7003.
* Borrower must continue to pay property taxes, insurance, applicable maintenance and association fees, and maintain the property. Failure to do so may result in foreclosure.
** Or the age of an eligible non-borrowing spouse.
*** SSI and Medicaid benefits may be affected. Get professional advice.
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