REVERSE MORTGATE BASICS - SUN VALLEY FINANCIAL

Reverse Mortgages allow people who are 62 and older a way to tap into the equity of their house on a tax free basis.  It is tax free because the IRS considers it a loan, as opposed to income.  In order to qualify for a reverse mortgage:

      1.   The youngest borrower on the title must be 62 or older.

      2.   A reverse mortgage can only be done on a primary residence.

      3.   The borrower typically owns the home free and clear, or has a small balance left on their mortgage, or is planning to purchase a home with a significant down payment.

      4.  There are no income, employment or credit score qualifications.

The amount of money one qualifies for is determined by an FHA/HUD formula that considers several variables such as the age of the youngest borrower on the title, the appraised value of the home, interest rates and the national loan limit.

As a result of the FHA Modernization Bill, there are three important changes to the program which further benefit the homeowner.  Effective January, 2009, you can use a government guaranty reverse mortgage to purchase a primary residence.  A new higher nationwide loan limit is now in effect, and there are more restrictive caps on the origination fee that lenders can change.

Reverse Mortgages Borrowers will NEVER (as long as the borrower lives in the primary residence) - 1.  Owe more money than the house is worth;  2.  Make a mortgage payment to the bank;  or 3. Relinquish title - the borrower owns the home, not the Bank.

For more specific information, please call:

Nancy Hope Cohen

Reverse Mortgage Consultant

Sun Valley Vinancial

480-628-1230

Broker ID: AZ-0906640

http://sunvalleyfinancial.com/ReverseMortgages.php