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Practical Applications of a HECM Reverse Mortgage*

  • Pay off mortgages

    • Live mortgage payment free (Taxes & Insurance still required)
    • Increase monthly cash-flow by removing the burden of the traditional mortgage payment.
    • Balance the adverse effects of inflation by improving monthly cashflow.
    • Remove the risk of losing your home to mortgage payment default.

  • Pay off high cost debt

    • Pay off credit cards
    • Pay off medical bills

  • Bring a delinquent mortgage current with a Reverse Mortgage

    • A Reverse can pay off a delinquent mortgage and prevent foreclosure

  • Home repairs / Modifications

    • Take care of the things that need fixing.
    • Modify your home to make it safer and more accessible to age in place.

  • Home improvements

    • Add the addition your have always wanted.
    • Remodel a bath or a kitchen to update your home.
    • Add modern amenities for your enjoyment.

  • Emergency Reserve credit line

    • Preserve your equity but establish a credit line for emergencies and peace of mind. **

  • Funds to pay for in-home care

  • Funds to satisfy tax liens & other liens

    • Get rid of problematic issues that can cost you significant legal expense.

  • Buy a new primary residence

    • Down-size your home.
    • Get rid of the steps.
    • Move closer to family.

  • Buy a 2nd Home.

    • Buy a vacation home with no mortgage on it or your primary to enjoy life to the fullest.

  • Travel the world

    • Take the vacation you have always wanted to take.

  • Supplement your retirement income

    • Receive cash out at closing.
    • Term payment-example: An equal monthly amount paid out over 10 years.
    • Add a new income stream with a tenured annuity-like payment for life. (Benefit only for life under tenure and modified tenure payment selection.)
    • Do all three! Access your equity in the form of cash, a credit line for emergencies, and a term or tenured life-time annuity-like payment. (Note: If term payment is selected, borrower can outlive the benefits of the term payment.)
  • Retirement & Financial planning
    • Establish a credit line that grows annually as a cost-effective mechanism for long-term care insurance.
    • Delay Social Security with proceeds from a Reverse Mortgage to maximize your overall Social Security benefit.
    • Preserve taxable assets so they can grow tax deferred.
    • Spend tax free equity to add longevity to your nest egg.
    • Establish balance with your retirement plan.

  • Estate planning

    • Diversification-Don't have all your eggs in one basket.

      • Diversify your income source
      • Diversify your asset base
    • Draw liquidity from your home for flexibility.

    • Establish a virtual Put on your home with a Reverse Mortgage

      • If the value of your home goes down, your benefit level is locked in.

    • Protect your spouse for life with benefits after your death.

      • Your spouse, as a co-borrower on the HECM Reverse Mortgage loan, will be able to access unused funds and stay in the home after you are gone.

    • Protect your heirs.

      • Any negative equity on the basis of advances in equity through the Reverse Mortgage or decline in value of your home does not adversely affect your estate or your heirs. The government insurance fund covers any losses even if your estate is flush with liquidity.

  • Minimally qualifying source of mortgage funds for retirees and active adults.

    • Eligibility is based on your age (62+) and your home value. In addition, mortgagees are required to perform a thorough financial assessment of prospective borrowers to determine their willingness and ability to meet the financial obligations of the HECM loan.

  • Tax free funds from a Reverse Mortgage

    • No adverse affect on Social Security retirement or Medicare benefits.
    • No increased tax bill for home equity advances.

* Actual amounts available vary greatly from borrower to borrower and will unlikely suffice to enable all or even several of the above examples.

** In the case of a credit line, a reverse mortgage will incur costs to the borrower.

Reverse Mortgage Provider Helping Seniors in Virginia, Maryland, Florida & Pennsylvania. Local areas served in Northern Virginia include Fairfax, Fairfax County, Leesburg, Loudoun County, Prince William County, Winchester and Frederick County, Warrenton and Fauquier County, Manassas, Springfield, Reston, Chantilly, Centreville, Arlington, Alexandria and Annandale.  Statewide services include Richmond, Southern Virginia and the Tidewater Region throughout the state of Virginia, Maryland, Florida and Pennsylvania.

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