Reverse Morgage Info

Enjoy the sunset from your new beach home!

I joke sometimes and say the only thing that stays the same is in real estate is change.  In today’s real estate market there is always something new to learn and the rules that applied for loans, closing, appraisals, etc. continue to the change.  I try to learn something new and recently Reverse Mortgages became the topic of instruction.

This week I learned more about the current FHA Insured Home Equity Conversion Mortgages (HECM) better or by their more familiar name: REVERSE MORTGAGES.    I’m not going to try to share everything I learned (you’ll need to see a pro on Reverse Mortgages like Walt Simpson of New American Mortgage 434.249.1998), since I’m still learning!   I do know that the Reverse Mortgage can be a great tool for purchasing a property, paying off an existing home mortgage or debt, as well as getting cash out of an existing property (what the owner does with the cash is up to them!).

Without going to deep, please remember as of today the youngest borrower needs to be 62 or older; the home must be the borrower’s primary residence; you’ve got to have significant equity in the home but can have a mortgage w/ some debt; and there are no income, health or credit requirements.  I also learned the proceeds of the Reverse Mortgage are not taxable (check with your accountant!).  You cannot participate in a FHA Insured HECM until you have completed third party MANDATORY Housing and Urban Development (HUD) counseling.  The person receiving the funds form a Reverse Mortgage goes into the process with their eyes wide open to make an informed decision.

OK, so how can you use the funds from a reverse mortgage:

1. Pay off existing mortgages, debts, bills, etc.

2. Saving a home from foreclosure (pretty cool!).

3. Contribute to children or grandchildren’s current education or help them with down payment funds for their home.

4. Purchase a second home at the beach, ski lodge, or anywhere else you want a second home!  What a great way to spend the summers at the beach with your grandchildren while keeping your existing home to use the rest of the year.

5. Give cash to family members, friends and/or charity now.

6. There are many other needs/desires that an FHA Insured HECM (Reverse Mortgage) can help with.  If you have a need or desire, let’s talk and see if a Reverse Mortgage will help meet the need or fulfil the desire!

Overall, I learned that Reverse Mortgages can be a great tool for home owners 62 and older to reach their financial goals and needs without tapping into investments, current income or savings!  Pretty neat!!!

Purchase a vacation home or help children &/or grandchildren with their housing needs.

 

About James Friend Dickerson

Real Estate Consultant As a native of Central Virginia and a full time REALTOR since 1991, James listens to your needs to provide information allowing you to make informed choices. In our constantly changing world, you need a REALTOR who puts you first providing rigidly flexible service. James Dickerson provides a high level of service designed to fit each individual clients needs. Having received many awards from both the local Association of REALTORS and RE/MAX International, James is recognized as an authority on the local real estate market. The highest form of recognition James receives continues to be the many repeat clients who seek out his services time after time plus sending their relatives, friends, co-workers and neighbors to James for their real estate needs. Contact James today for an interview to discuss your real estate needs. James is a licensed real estate sales person in the Commonwealth of Virginia with Charlottesville Solutions. Personal As a Central Virginia native (Born in Charlottesville and raised in Albemarle and Louisa Counties), James' youth was filled with extra-curricular activities and organizations centered around school, church and the Boy Scouts of America. A graduate of Virginia Tech with a degree in Forestry and Wildlife Management, James' non-real estate activities include spending time with family & friends, traveling, stalking deer & spring gobblers, fly fishing, church and Masonic activities. James and his lovely bride Karen live between Zion Crossroads and Gordonsville in the Green Springs area of Louisa County. Since 2022 Jim has served on the Louisa County Planning Commission. Their dog Sammy passed away so now they dog sit for friends and family.
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