A reverse mortgage, also known as a home equity conversion mortgage (HECM), enables individuals in need of money to convert a portion of their home equity into cash without selling their property. First introduced in 1989, the reverse mortgage was designed as an aid for older homeowners experiencing financial hardship. This type of loan is only available to persons who are 62 years of age or older. In order to qualify for a reverse mortgage, one must own his or her home or carry a low mortgage balance that can be paid off at closing using proceeds from the reverse mortgage loan. The amount of one’s loan is dependent on a number of factors, including age, the value of the home, and interest rate. Upon borrowing cash against their home equity, an individual may defer payment on the loan until they relocate, sell their home, or die.
Individuals who acquire a reverse mortgage in Kansas City will experience a spectrum of benefits. One of the biggest advantages of a reverse mortgage is that you retain the title to your home—meaning that procuring the funds you need doesn’t require sacrificing your shelter, comfort, or dignity. Furthermore, your home equity can be converted to cash according to your individual needs, which means that you can choose to receive your loan payout in a lump sum, in monthly payments, or in the form of a line of credit.
Reverse mortgage borrowers also receive a variety of protections. The Federal Housing Administration insures reverse mortgages, safeguarding the borrower in case the housing marking declines and the sale price of your home dips below the loan amount. A reverse mortgage loan paid in monthly installments will not impact your Social Security or Medicare benefits, and there are no income or credit requirements for applying for a reverse mortgage. Once you have received your loan, there are no monthly payments, which means that you can use your cash however you choose, from supplementing your income to covering healthcare expenses to funding a major home repair or improvement project.
If you’re seeking a fast closing mortgage lender in Kansas City, nothing is quicker and easier than our streamlined three-step process:
- Fill out our brief Pre-Approval Application;
- Await a personalized information packet prepared by an experienced loan officer;
- Schedule a phone call with your loan officer to discuss the details of your loan.
A reverse mortgage can be a lifeline for a senior in need of cash, whatever he or she intends to use it for. As a leading quick-closing mortgage lender in Kansas City, First Fidelis can help you navigate the process of procuring a loan to acquire the cash you need—quickly and conveniently. If you would like to learn more about reverse mortgages in Kansas City or are ready to apply, contact First Fidelis today!