Mortgage Team 1 is a leading reverse mortgage provider in Mobile, AL, serving surrounding areas including Saraland, Satsuma, Daphne, as well as the entire state of Alabama. For more information on reverse mortgages and how they benefit you or a loved one, contact us at (251) 650-0805 or fill out the form to the right.
What is a Reverse Mortgage?
- Reverse mortgages are a way for homeowners, 62 and over, to access equity they have in their homes.
- A reverse mortgage is a loan against your home that you do not have to pay back for as long as you live in the home.
- You still own your home throughout the entire term of the loan.
- A reverse mortgage can help you access cash based on the value of your home without you having to make monthly mortgage payments and can help you better manage your financial future.
Benefits of a Reverse Mortgage
- No monthly mortgage payments
- No income qualifications
- Loan proceeds may be tax-free (consult a financial or tax advisor).
- You can receive the money in a way that suits your financial situation – lump sum, line of credit, fixed monthly payments – or a combination of any of these options.
- May not affect Social Security or Medicare benefits (contact a financial or tax advisor).
- The loan is not due until the last borrower permanently leaves the home.
Am I Eligible for a Reverse Mortgage?
- There are no income requirements.
- Minimal credit verification performed (Bad or derogatory credit does not disqualify you).
- The amount of reverse mortgage benefit is determined by the age of the youngest borrower on title (all borrowers must be at least 62 years of age).
- The current appraised value of the home.
A Reverse Mortgage loan is a type of finance for elderly individuals who own a home to leverage their property’s value into a tax-free lump sum without having to sell or move. A reverse mortgage is insured by the U.S Government, the Department of Housing and Urban Development (HUD) and allows homeowners who are 62 years of age or older to borrow against the equity of their homes.
With this type of loan, a qualifying property owner can opt to receive payments that are tax-free from a reverse mortgage lender either on a monthly basis, within a lump sum or as a line of credit instead. With a reverse mortgage, an individual is not required to have any sort of income and credit checks are not required to qualify. In addition, repayments are not required while a borrower lives in the home and Social Security and Medicare benefits will not be affected by receiving this loan.
Reverse mortgage lenders are paid the amount of the loan when the home is sold (when the owners choose to move or pass away). Keep in mind that reverse mortgage borrowers continue to own their homes and because there are no monthly loan payments due, the amount owed grows over time.
Does my home qualify for a reverse mortgage?
If you are interested in this type of mortgage, the first criteria to consider is whether or not your residence meets HUD Standards, which is required to move forward. The reverse mortgage must be the only mortgage on the residence. That means that if there is a current mortgage on the property, it must be able to be paid off with the proceeds of the reverse mortgage.
Examples of Qualifying Homes
- Single Family One-Unit Residences
- 2-4 Unit Owner-Occupied Residences
Residences That May Qualify
- Manufactured Homes
- Planned Unit