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Use this menu to find other Eldercare Services in your area |
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Virginia Reverse Mortgages |
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Abingdon VA - Virginia reverse mortgage -- Citifinancial , Washington County Click to request assistance
Abingdon VA - Virginia home equity loan -- Allied Home Mortgage Capital Corp , Washington County Click to request assistance
Abingdon VA - Virginia reverse mortgage -- Equity Services , Washington County Click to request assistance
Abingdon VA - Virginia home equity loan -- Trupoint Bank , Washington County Click to request assistance
Altavista VA - Virginia reverse mortgage -- First National Bank Of Altavista , Campbell County Click to request assistance
Altavista VA - Virginia home equity loan -- Amston Mortgage Company , Campbell County Click to request assistance
Altavista VA - Virginia reverse mortgage -- First National Bank Of Altavista , Campbell County Click to request assistance
Amhrst VA - Virginia home equity loan -- Mortgage Atlantic Inc , Amherst County Click to request assistance
Amissville VA - Virginia reverse mortgage -- Peoples Choice Mortgage , Culpeper County Click to request assistance
Ashburn VA - Virginia home equity loan -- Epix Funding , Loudoun County Click to request assistance
Berryville VA - Virginia reverse mortgage -- Bank Of Clarke County , Clark County Click to request assistance
Big Stone Gap VA - Virginia home equity loan -- American General Financial Services , Wise County Click to request assistance
Blacksburg VA - Virginia reverse mortgage -- Freedom First Credit Union , Montgomery County Click to request assistance
Blacksburg VA - Virginia home equity loan -- Chase Home Finance , Montgomery County Click to request assistance
Blackstone VA - Virginia reverse mortgage -- Virginia Mortgage Services Inc , Nottoway County Click to request assistance
Blairs VA - Virginia home equity loan -- Peoples National Bank , Pittsylvania County Click to request assistance
Bna Vsta VA - Virginia reverse mortgage -- Grace Mortgage & Financial , Rockbrdge County Click to request assistance
Bracey VA - Virginia home equity loan -- Lake Gaston Mortgage Service , Mecklenburg County Click to request assistance
Bristol VA - Virginia reverse mortgage -- Atlantic Bay Mortgage Group , Washington County Click to request assistance
Bristol VA - Virginia home equity loan -- Trupoint Bank , Washington County Click to request assistance
Bristol VA - Virginia reverse mortgage -- Four Leaf Financial Corp , Washington County Click to request assistance
Bristol VA - Virginia home equity loan -- Home Town Mortgage Group Inc , Washington County Click to request assistance
Brookneal VA - Virginia home equity loan -- Bank Of Charlotte County The , Campbell County Click to request assistance
Buchanan VA - Virginia reverse mortgage -- Bank Of Botetourt , Botetourt County Click to request assistance
Buena Vista VA - Virginia home equity loan -- Gold Key Mortgage , Rockbrdge County Click to request assistance
Buena Vista VA - Virginia reverse mortgage -- Bank Of America , Rockbrdge County Click to request assistance
Buena Vista VA - Virginia home equity loan -- Commonwealth Mortgage Group , Rockbrdge County Click to request assistance
Capron VA - Virginia reverse mortgage -- Bank of Southside Virginia the , Southampton County Click to request assistance
Centreville VA - Virginia home equity loan -- American Home Mortgage , Fairfax County Click to request assistance
Centreville VA - Virginia reverse mortgage -- FDR Capital , Fairfax County Click to request assistance
Charlottesville VA - Virginia home equity loan -- Pilot Mortgage LLC , Albemarle County Click to request assistance
Charlottesville VA - Virginia home equity loan -- A Full Service Mortgage Company , Albemarle County Click to request assistance
Charlottesville VA - Virginia reverse mortgage -- Wachovia Mortgage Corporation , Albemarle County Click to request assistance
Charlottesville VA - Virginia home equity loan -- Access Home Mortgages LLC , Albemarle County Click to request assistance
Charlottesville VA - Virginia reverse mortgage -- Compass Home Loans LLC , Albemarle County Click to request assistance
Charlottesville VA - Virginia home equity loan -- Sterling Mortgage Corporation , Albemarle County Click to request assistance
Charlottesville VA - Virginia reverse mortgage -- Millennuim Mortgage , Albemarle County Click to request assistance
Charlottesville VA - Virginia home equity loan -- National City Mortgage , Albemarle County Click to request assistance
Charlottesville VA - Virginia reverse mortgage -- Heartwell Mortgage , Albemarle County Click to request assistance
Charlottesville VA - Virginia home equity loan -- Tailwind Mortgage , Albemarle County Click to request assistance
Charlottesville VA - Virginia home equity loan -- C & F Mortgage Corporation , Albemarle County Click to request assistance
Chase City VA - Virginia reverse mortgage -- Benchmark Community Bank , Mecklenburg County Click to request assistance
Chatham VA - Virginia home equity loan -- American National Bank & Trust Company , Pittsylvania County Click to request assistance
Chatham VA - Virginia reverse mortgage -- Advantage Mortgage , Pittsylvania County Click to request assistance
Chesapeake VA - Virginia home equity loan -- Potomac Investments , Norfolk County Click to request assistance
Chesapeake VA - Virginia reverse mortgage -- Premier Mortgage Capital , Norfolk County Click to request assistance
Chesapeake VA - Virginia home equity loan -- 1st Century Mortgage , Norfolk County Click to request assistance
Christiansburg VA - Virginia reverse mortgage -- Member One Federal Credit Union , Montgomery County Click to request assistance
Christiansburg VA - Virginia home equity loan -- Primary Residential Mortgage Inc , Montgomery County Click to request assistance
Christiansburg VA - Virginia reverse mortgage -- American General Financial Services , Montgomery County Click to request assistance
Clarksville VA - Virginia home equity loan -- Benchmark Community Bank , Mecklenburg County Click to request assistance
Clarksville VA - Virginia reverse mortgage -- Benchmark Community Bank , Mecklenburg County Click to request assistance
Coeburn VA - Virginia home equity loan -- Miners Exchange Bank , Wise County Click to request assistance
Collinsville VA - Virginia reverse mortgage -- Sallie Mae Financial , Henry County Click to request assistance
Crozet VA - Virginia home equity loan -- Bank Of America , Albemarle County Click to request assistance
Culpeper VA - Virginia home equity loan -- Cedar Creek Mortgage LLC , Culpeper County Click to request assistance
Culpeper VA - Virginia reverse mortgage -- SLS Mortgage , Culpeper County Click to request assistance
Dahlgren VA - Virginia home equity loan -- NSWC Federal Credit Union , King George County Click to request assistance
Damascus VA - Virginia reverse mortgage -- Bank of Damascus , Washington County Click to request assistance
Danville VA - Virginia home equity loan -- 1st Medallion Mortgage Corp , Pittsylvania County Click to request assistance
Danville VA - Virginia reverse mortgage -- SunTrust Mortgage Inc , Pittsylvania County Click to request assistance
Danville VA - Virginia home equity loan -- First Greensboro Home Equity Inc , Pittsylvania County Click to request assistance
Elkton VA - Virginia reverse mortgage -- Blue Ridge Mortgage Services , Rockingham County Click to request assistance
Emporia VA - Virginia home equity loan -- American General Financial Services , Greensvilloe County Click to request assistance
Fairfax VA - Virginia home equity loan -- Homeland Mortgage Services , Fairfax County Click to request assistance
Fairfax VA - Virginia reverse mortgage -- Mortgage Concepts Inc , Fairfax County Click to request assistance
Fairfield VA - Virginia home equity loan -- Bank Of Botetourt , Rockbridge County Click to request assistance
Falls Church VA - Virginia reverse mortgage -- Financial Freedom , Fairfax County Click to request assistance
Falls Church VA - Virginia home equity loan -- Acacia Federal Savings Bank , Fairfax County Click to request assistance
Farmville VA - Virginia reverse mortgage -- American Home Loans , Prince Edward County Click to request assistance
Farmville VA - Virginia home equity loan -- American General Financial Services , Prince Edward County Click to request assistance
Farmville VA - Virginia reverse mortgage -- Equity-One Of Virginia , Prince Edward County Click to request assistance
Farmville VA - Virginia home equity loan -- National City Mortgage , Prince Edward County Click to request assistance
Forest VA - Virginia reverse mortgage -- C & F Mortgage Corp , Bedford County Click to request assistance
Forest VA - Virginia home equity loan -- Carteret Mortage Corp , Bedford County Click to request assistance
Forest VA - Virginia reverse mortgage -- CFIC Home Mortgage , Bedford County Click to request assistance
Forest VA - Virginia home equity loan -- Weststar Mortgage , Bedford County Click to request assistance
Forest VA - Virginia reverse mortgage -- Bank Of The James Mortgage , Bedford County Click to request assistance
Fredericksburg VA - Virginia home equity loan -- 1st Mariner Bankcorp , Spotsylvania County Click to request assistance
Fredericksburg VA - Virginia home equity loan -- Countrywide Home Loans , Spotsylvania County Click to request assistance
Fredericksburg VA - Virginia reverse mortgage -- Sterling Mortgage Fredericksburg , Spotsylvania County Click to request assistance
Fredericksburg VA - Virginia home equity loan -- Weststar Mortgage Inc , Spotsylvania County Click to request assistance
Front Royal VA - Virginia reverse mortgage -- Sun Trust Mortgage Inc , Warren County Click to request assistance
Galax VA - Virginia home equity loan -- Grayson National Bank , Grayson County Click to request assistance
Galax VA - Virginia reverse mortgage -- American General Financial Services , Grayson County Click to request assistance
Gate City VA - Virginia home equity loan -- Bank Of Scott County , Scott County Click to request assistance
Glen Allen VA - Virginia reverse mortgage -- Capital Home Mortgage, LLC , Henrico County Click to request assistance
Gloucester VA - Virginia home equity loan -- Colonial Virginia Bank , Gloucester County Click to request assistance
Gordonsville VA - Virginia home equity loan -- Community Mortgage , Orange County Click to request assistance
Halifax VA - Virginia reverse mortgage -- Gold Star Mortgage , Halifax County Click to request assistance
Hampton VA - Virginia home equity loan -- ReverseMortgage.pro , Elizabeth City County Click to request assistance
Harrisonburg VA - Virginia reverse mortgage -- Wells Fargo Home Mortgage , Rockingham County Click to request assistance
Hillsville VA - Virginia home equity loan -- Bank Of America , Carroll County Click to request assistance
Hillsville VA - Virginia reverse mortgage -- Bank Of Floyd , Carroll County Click to request assistance
Jonsvll VA - Virginia home equity loan -- Powell Valley National Bank , Lee County Click to request assistance
Kenbridge VA - Virginia reverse mortgage -- Benchmark Community Bank , Lunenburg County Click to request assistance
Lexington VA - Virginia home equity loan -- Mortgage Centre Inc The , Rockbridge County Click to request assistance
Louisa VA - Virginia reverse mortgage -- Lake Anna Mortgage LLC , Louisa County Click to request assistance
Lynchburg VA - Virginia home equity loan -- Diversified Mortgage Brokers , Campbell County Click to request assistance
Lynchburg VA - Virginia reverse mortgage -- The Mortgage Centre Inc , Campbell County Click to request assistance
Lynchburg VA - Virginia home equity loan -- Homestead Acceptance Inc , Campbell County Click to request assistance
Lynchburg VA - Virginia reverse mortgage -- Blue Ridge Mortgage , Campbell County Click to request assistance
Lynchburg VA - Virginia home equity loan -- Mid Atlantic Mortgage Group Inc , Campbell County Click to request assistance
Lynchburg VA - Virginia home equity loan -- Blue Ridge Mortgage LLC , Campbell County Click to request assistance
Lynchburg VA - Virginia reverse mortgage -- Family First Mortgage , Campbell County Click to request assistance
Marshall VA - Virginia home equity loan -- Marshall National Bank & Trust , Fauquier County Click to request assistance
Martinsville VA - Virginia reverse mortgage -- Blue Ridge Mortgage Company , Henry County Click to request assistance
Martinsville VA - Virginia home equity loan -- SunTrust Mortgage Inc , Henry County Click to request assistance
Martinsville VA - Virginia reverse mortgage -- American General Financial Services , Henry County Click to request assistance
Martinsville VA - Virginia home equity loan -- Bank of America , Henry County Click to request assistance
Martinsville VA - Virginia reverse mortgage -- Allied Home Mortgage Capital Corp , Henry County Click to request assistance
Max Meadows VA - Virginia home equity loan -- Bank Of Marion , Wythe County Click to request assistance
Mc Gaheysville VA - Virginia home equity loan -- Page Valley Bank , Rockingham County Click to request assistance
Mc Lean VA - Virginia reverse mortgage -- Reverse Mortgages , Fairfax County Click to request assistance
Mnkn Sbt VA - Virginia home equity loan -- Home Equity Mortgage Inc , Goochland County Click to request assistance
Moneta VA - Virginia reverse mortgage -- Bank Of the James , Bedford County Click to request assistance
Mount Sidney VA - Virginia home equity loan -- Village Bank Mortgage , Augusta County Click to request assistance
Nathalie VA - Virginia reverse mortgage -- Money Organization Of Maryland , Halifax County Click to request assistance
Newport News VA - Virginia home equity loan -- Closers The , Warwick County Click to request assistance
Newport News VA - Virginia reverse mortgage -- Affordable Mortgage Of VA , Warwick County Click to request assistance
Norton VA - Virginia home equity loan -- Miners Exchange Bank , Wise County Click to request assistance
Norton VA - Virginia reverse mortgage -- Mountain Home Loans Inc , Wise County Click to request assistance
Oakton VA - Virginia home equity loan -- Jefferson Mortgage Group LLC, George Omilan, Fairfax County Click to request assistance
Palmyra VA - Virginia reverse mortgage -- Kimberlie Financial Group The , Albemarle County Click to request assistance
Palmyra VA - Virginia home equity loan -- C & F Mortgage Corporation , Albemarle County Click to request assistance
Pennington Gap VA - Virginia reverse mortgage -- Farmers & Miners Bank , Lee County Click to request assistance
Pnngtn Gp VA - Virginia home equity loan -- Lee Bank & Trust Co , Lee County Click to request assistance
Purcellville VA - Virginia home equity loan -- Mortgage Enterprises Incorporation , Loudoun County Click to request assistance
Radford VA - Virginia reverse mortgage -- Atlantic Bay Mortgage , Montgomery County Click to request assistance
Radford VA - Virginia home equity loan -- Salem Financial , Montgomery County Click to request assistance
Raphine VA - Virginia reverse mortgage -- Community Bank , Rockbridge County Click to request assistance
Reedville VA - Virginia home equity loan -- Financial Freedom Reverse Mortgages , Northumberland County Click to request assistance
Richmond VA - Virginia reverse mortgage -- Senior's First Reverse Mortgage Specialists , Henrico County Click to request assistance
Richmond VA - Virginia home equity loan -- Sterling Mortgage Corp , Henrico County Click to request assistance
Richmond VA - Virginia reverse mortgage -- First Market Mortgage , Henrico County Click to request assistance
Roanoke VA - Virginia home equity loan -- American General Financial Services , Roanoke County Click to request assistance
Roanoke VA - Virginia home equity loan -- Loan Express , Roanoke County Click to request assistance
Roanoke VA - Virginia reverse mortgage -- National City Mortgage , Roanoke County Click to request assistance
Roanoke VA - Virginia home equity loan -- Commonwealth Mortgage , Roanoke County Click to request assistance
Roanoke VA - Virginia reverse mortgage -- Primary Residential Mortgage , Roanoke County Click to request assistance
Roanoke VA - Virginia home equity loan -- Roanoke Valley Credit Union , Roanoke County Click to request assistance
Roanoke VA - Virginia reverse mortgage -- Accredited Home Lenders , Roanoke County Click to request assistance
Ruckersville VA - Virginia home equity loan -- Flagstar Bank , Greene County Click to request assistance
Ruckersville VA - Virginia reverse mortgage -- Wells Fargo Home Mortgage , Greene County Click to request assistance
S Hill VA - Virginia home equity loan -- Southside Mortgage Corp , Mecklenburg County Click to request assistance
Salem VA - Virginia reverse mortgage -- Salem Financial , Roanoke County Click to request assistance
Salem VA - Virginia home equity loan -- Member One Federal Credit Union , Roanoke County Click to request assistance
Sandy Level VA - Virginia reverse mortgage -- Colonial Home Mortgage Inc , Pittsylvania County Click to request assistance
South Boston VA - Virginia home equity loan -- Blue Ridge Mortgage , Halifax County Click to request assistance
South Boston VA - Virginia reverse mortgage -- Allied Home Mortgage Capital Corp , Halifax County Click to request assistance
South Boston VA - Virginia home equity loan -- A N B Investor Services , Halifax County Click to request assistance
South Hill VA - Virginia reverse mortgage -- American General Financial Services , Mecklenburg County Click to request assistance
South Hill VA - Virginia home equity loan -- Superior Mortgage Corporation , Mecklenburg County Click to request assistance
South Hill VA - Virginia reverse mortgage -- Benchmark Community Bank , Mecklenburg County Click to request assistance
Stafford VA - Virginia home equity loan -- Household Finance Corporation , Stafford County Click to request assistance
Stafford VA - Virginia home equity loan -- Beltway Mortgage Corp , Stafford County Click to request assistance
Stafford VA - Virginia reverse mortgage -- Armour Financial Inc , Stafford County Click to request assistance
Stanardsville VA - Virginia home equity loan -- Pioneer Bank , Greene County Click to request assistance
Staunton VA - Virginia reverse mortgage -- Bank Of America , Staunton City County Click to request assistance
Staunton VA - Virginia home equity loan -- New Frontier Mortgage LLC , Staunton City County Click to request assistance
Staunton VA - Virginia reverse mortgage -- New Frontier Mortgage Llc , Staunton City County Click to request assistance
Strasburg VA - Virginia home equity loan -- First Bank , Shenandoah County Click to request assistance
Stuarts Draft VA - Virginia reverse mortgage -- Allied Mortgage , Augusta County Click to request assistance
Tazewell VA - Virginia home equity loan -- Access National Mortgage , Tazewell County Click to request assistance
Verona VA - Virginia reverse mortgage -- Continental Mortgage , Augusta County Click to request assistance
Vienna VA - Virginia home equity loan -- City Mortgage Group, Inc , Fairfax County Click to request assistance
Vienna VA - Virginia reverse mortgage -- Olympia West Mortgage Group , Fairfax County Click to request assistance
Vinton VA - Virginia home equity loan -- LT McGhee & Co , Roanoke County Click to request assistance
Vinton VA - Virginia reverse mortgage -- Chocklett Mortgage & Financial Services , Roanoke County Click to request assistance
Virginia Beach VA - Virginia home equity loan -- Tidewater Home Mortgage , Prince Anne County Click to request assistance
Virginia Beach VA - Virginia home equity loan -- Community Bank , Prince Anne County Click to request assistance
Virginia Beach VA - Virginia reverse mortgage -- United Capital Mortgage , Prince Anne County Click to request assistance
Vrgna Bch VA - Virginia home equity loan -- Ocean Mortgage Inc , Prince Anne County Click to request assistance
Warrenton VA - Virginia reverse mortgage -- Preservation Mortgage , Fauquier County Click to request assistance
Warrenton VA - Virginia home equity loan -- Blue Ridge Finance , Fauquier County Click to request assistance
Warrenton VA - Virginia reverse mortgage -- Northpoint Mortgage , Fauquier County Click to request assistance
Warrenton VA - Virginia home equity loan -- Archstone Mortgage Group , Fauquier County Click to request assistance
Warrenton VA - Virginia reverse mortgage -- Heltzel Synergy One Mortgage , Fauquier County Click to request assistance
Waynesboro VA - Virginia home equity loan -- DuPont Community Credit Union , Augusta County Click to request assistance
Waynesboro VA - Virginia home equity loan -- Virginia Mortgage Services Inc , Augusta County Click to request assistance
Wbr Cty VA - Virginia reverse mortgage -- Southern Finance , Scott County Click to request assistance
Weber City VA - Virginia home equity loan -- American General Financial Services , Scott County Click to request assistance
Weber City VA - Virginia reverse mortgage -- Bank Of Scott County , Scott County Click to request assistance
Winchester VA - Virginia home equity loan -- Action Mortgage , Frederick County Click to request assistance
Winchester VA - Virginia reverse mortgage -- First Horizon Home Loans , Frederick County Click to request assistance
Winchester VA - Virginia home equity loan -- Integrity Home Mortgage Corporation , Frederick County Click to request assistance
Wise VA - Virginia reverse mortgage -- American General Financial Services , Wise County Click to request assistance
Wrrntn VA - Virginia home equity loan -- Nationside Mortgage Inc , Fauquier County Click to request assistance
Wytheville VA - Virginia reverse mortgage -- First Bank Of Virginia , Wythe County Click to request assistance
Wytheville VA - Virginia home equity loan -- American General Financial Services , Wythe County Click to request assistance
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Contact Virginia Reverse Mortgage Services
For the convenience of the public, care providers are listed on this page to show services available in a particular area. We cannot verify the business practice or the background of providers listed on this page. As a result, we do not provide contact information. Members of the Virginia Care Planning Council, listed on this site, have agreed to abide by a code of ethics. If you wish to contact a member of the Virginia Care Planning Council regarding any of the eldercare services listed on this page, please fill out the form below and a council member will contact you. Please be aware that your information may be shared with other members of the Care Planning Council who might be able to help you as well. Read Our Disclaimer.
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About Reverse Mortgages
For many seniors the equity in their home is their largest single asset, yet it is unavailable to use unless they use a home-equity loan. But a conventional loan really doesn't free up the equity because the money has to be paid back with interest.
A reverse mortgage is a risk-free way of tapping into home equity without creating monthly payments and without requiring the money to be paid back during a person's lifetime. Instead of making payments the cash flow is reversed and the senior receives payments from the bank. Thus the title "reverse mortgage".
Many seniors are finding they can use a reverse mortgage to pay off an existing conventional mortgage, to create money for a down payment for a second home or to pay off debt. Popularity is skyrocketing. Over the last five years the number of reverse mortgages nationwide has tripled. The uses of this untapped wealth are only limited by a person's imagination.
For those seniors who are less fortunate but own a home, a reverse mortgage can allow them to remain in the home by creating extra income. It can also allow for remodeling or repairs and when the time comes to sell, the investment in the home can make it more valuable.
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About Reverse Mortgages
For many seniors the equity in their home is their largest single asset, yet it is unavailable to use unless they use a home-equity loan. But a conventional loan really doesn't free up the equity because the money has to be paid back with interest.
A reverse mortgage is a risk-free way of tapping into home equity without creating monthly payments and without requiring the money to be paid back during a person's lifetime. Instead of making payments the cash flow is reversed and the senior receives payments from the bank. Thus the title "reverse mortgage".
Many seniors are finding they can use a reverse mortgage to pay off an existing conventional mortgage, to create money for a down payment for a second home or to pay off debt. Popularity is skyrocketing. Over the last five years the number of reverse mortgages nationwide has tripled. The uses of this untapped wealth are only limited by a person's imagination.
For those seniors who are less fortunate but own a home, a reverse mortgage can allow them to remain in the home by creating extra income. It can also allow for remodeling or repairs and when the time comes to sell, the investment in the home can make it more valuable.
False Beliefs
- "The lender could take my house." The homeowner retains full ownership. The Reverse Mortgage is just like any other mortgage; you own the title and the bank holds a lien. You can pay it off anytime you like.
- "I can be thrown out of my own home." Homeowners can stay in the home as long as they live, with no payment requirement.
- "I could end up owing more than my house is worth." The homeowner can never owe more than the value of the home at the time the loan is due.
- "My heirs will be against it." Experience demonstrates heirs are in favor of Reverse Mortgages.
Virtually anyone can qualify. You must be at least 62, own and live in, as a primary residence, a home [1-4 family residence, condominium, co-op, permanent mobile home, or manufactured home] in order to qualify for a reverse mortgage.
There are no income, asset or credit requirements. It is the easiest loan to qualify for.
A reverse mortgage is similar to a conventional mortgage. As an example:
- The bank does not own the home but owns a lien on the property just as with any other mortgage
- You continue to hold title to the property as with any other mortgage
- The bank has no recourse to demand payment from any family member if there is not enough equity to cover paying off the loan
- There is no penalty to pay off the mortgage early
The proceeds from a reverse mortgage are tax-free and can be used for any legal purpose you wish:
- daily living expenses
- home repairs and improvements
- medical bills and prescription drugs
- pay-off of existing debts
- education, travel
- long-term care and/or long-term care insurance
- financial and estate tax plans
- gifts and trusts
- to purchase life insurance
- or any other needs you may have.
The amount of reverse mortgage benefit for which you may qualify, will depend on
- your age at the time you apply for the loan,
- the reverse mortgage program you choose,
- the value of your home, current interest rates,
- and for some products, where you live.
As a general rule, the older you are and the greater your equity, the larger the reverse mortgage benefit will be (up to certain limits, in some cases). The reverse mortgage must pay off any outstanding liens against your property before you can withdraw additional funds.
The loan is not due and payable until the borrower no longer occupies the home as a principal residence (i.e. the borrower sells, moves out permanently or passes away). At that time, the balance of borrowed funds is due and payable, all additional equity in the property belongs to the owners or their beneficiaries.
There are three reverse mortgage loan products available, the FHA - HECM (Home Equity Conversion Mortgage), Fannie Mae - HomeKeeper®, and the Cash Account programs. Over 90% of all reverse mortgages are HECM contracts.
The costs associated with getting a reverse mortgage are similar to those with a conventional mortgage, such as the origination fee, appraisal and inspection fees, title policy, mortgage insurance and other normal closing costs. With a reverse mortgage, all of these costs will be financed as part of the mortgage prior to your withdrawal of additional funds.
You must participate in an independent Credit Counseling session with a FHA-approved counselor early in the application process for a reverse mortgage. The counselor's job is to educate you about all of your mortgage options. This counseling session is at no cost to the borrower and can be done in person or, more typically, over the telephone. After completing this counseling, you will receive a Counseling Certificate in the mail which must be included as part of the reverse mortgage application.
You can choose 3 options to receive the money from a reverse mortgage:
1) all at once (lump sum);
2) fixed monthly payments (for up to life);
3) a line of credit; or a combination of a line of credit and monthly payments. The most popular option, chosen by more than 60 percent of borrowers, is the line of credit, which allows you to draw on the loan proceeds at any time.
Keeping money in a reverse mortgage line of credit in most states will not count as an asset for Medicaid eligibility as this would be considered a loan and not a resource for Medicaid spend down. However transferring the money to an investment or to a bank account would represent an asset and would trigger a spend down requirement. Please note however that distinguishing between what portion of reverse mortgage proceeds might be counted as a loan and what portion as an asset is not a simple black and white decision. It is best to get an opinion from an elder attorney in your state.
If a senior homeowner chooses to repay any portion of the interest accruing against his borrowed funds, the payment of this interest may be deductible (just as any mortgage interest may be). A reverse mortgage loan will be available to a senior homeowner to draw upon for as long as that person lives in the home. And, in some cases, the lender increases the total amount of the line of credit over time (unlike a traditional Home Equity Line whose credit limit is established at origination). If a senior homeowner stays in the property until he or she dies, his or her estate valuation will be reduced by the amount of the debt.
At the death of the last borrower or the sale of the home, the loan is repaid from equity in the home. Any remaining equity (which is often the case) goes to the heirs. Almost all reverse mortgages are the HECM loan which is guaranteed by FHA mortgage insurance. If there is not enough equity to cover the loan, the insurance satisfies the loan by paying the deficit. With a HECM loan, the bank will never come after the heirs to satisfy the mortgage obligation.
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