When All is Said and Done, Enjoying your Retirement
Below are the most popular options for using your homes equity as part of your retirement package. We can go into greater detail of your personal needs during your 30 minute free consultation.
Reverse Mortgage HELOC
A reverse mortgage is a type of loan for seniors, while a home equity line of credit (HELOC) is a line of credit available to homeowners of any age. A reverse mortgage line of credit is an option available with a government-backed reverse mortgage (HECM) that has distinct features separating it from a traditional HELOC.
Reverse Mortgage
A reverse mortgage allows senior homeowners to convert a portion of their home's equity into cash without having to make monthly mortgage payments. The loan amount is repaid when the borrower dies, sells the home, or moves out permanently.
Income Requirements
Reverse mortgages do not have traditional income requirements, but lenders perform a financial assessment to ensure you can cover ongoing property expenses like taxes and insurance. This assessment focuses on your residual income, which is the amount of money left after paying your monthly obligations.
Reverse Mortgage HELOC Benefits
- Access to cash without selling.
- No monthly payments.
- Tax free proceeds.
- Secure access- cannot be cancelled by lender.
- Growing line of credit.
Reverse Mortgage Benefits
- Access to cash without selling.
- No monthly payments.
- Tax free proceeds.
- Protects heirs from debt.
Home Equity Investment
(Not Recommended)
A company provides you with a lump sum in exchange for a share of your home’s future appreciation. There are no monthly payments, but the cost can be high if your home's value increases significantly.
Minimum Qualification Requirements
These are the specific requirements for qualification:
- You must be at least 62 years old.
- You must own the home.
- It must be and remain your primary residence.
- You must be able to continue to pay property taxes, pay insurance, and maintain the property.
- You must be able to complete a counseling session with U.S. department of housing and urban development approved agency.
Make Sure to Schedule your Free Consultation to
Discuss your Personal Circumstances
