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Frequently Asked Questions

Are there any limits on how I use the money I receive from a reverse mortgage?

Financial Freedom - Reverse Mortgage FAQ
You can use the money for anything you choose, from daily living expenses, home improvements, healthcare expenses, paying off existing debts, or simply enhancing your retirement years. For many people, the money provides a "financial security blanket," in case unexpected expenses arise.
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How can I receive the money from a reverse mortgage?

Retirement Funding Group // Frequently Asked Questions
With most reverse mortgage products you have the ability to choose your own payment plan. Based on the amount you qualify for and your financial needs, we will help you make the right decision. The majority of our borrowers use the first portion of their available loan amount to payoff existing debt, such as their current mortgage. The remaining available loan amount may be accessed in one of the following ways: Line of Credit – draw funds as needed from the available line of credit.
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I still owe money on a first or second mortgage. Can I still get a reverse mortgage?

Financial Freedom - Reverse Mortgage FAQ
Yes. You may be eligible for a reverse mortgage even if you still owe money on a first or second mortgage. The funds you would receive in the reverse mortgage would be used to pay off whatever existing mortgages you have on the property.
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How can I use money from a reverse mortgage?

FAQ - Frequently Asked Questions Reverse Mortgage, HECM, Sen...
AARP and the U.S. Department of Housing and Urban Development (HUD) conducted a survey of reverse mortgage borrowers to learn how they used the proceeds from their reverse mortgages. They found that households used reverse mortgages in the following ways: What distinguishes Amstar Mortgage Corp. from our competition is our attention to detail for what our clients' goals and needs are, and being able to match them up with the proper lender. Please contact us today at (321) 751-7887.
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Are there any limits on how I can use the funds from a reverse mortgage?

Alliance Reverse Mortgage
No. Borrowers have used reverse mortgages for a variety of purposes, including paying health care expenses, supplementing retirement income, financing home improvements or home modifications, paying for education and classes, or visiting friends and family. Some have used a reverse mortgage to purchase recreational vehicles, start a small business , and travel the Amazon. Some have used reverse mortgages to eliminate expenses by paying off mortgages and credit card debt.
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Is there a choice in how I receive the cash from my reverse mortgage?

Financial Freedom - Reverse Mortgage FAQ
Most definitely. With most reverse mortgages you have a wide range of payment options, one of which should be ideal to meet your financial needs. You can receive equal monthly payments as long as one of the borrowers lives and continues to occupy the property as a principal residence. You can get a line of credit*; which allows you to take funds at times and in amounts of your choosing until the line of credit is exhausted.
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What is a reverse mortgage?

Financial Freedom - Reverse Mortgage FAQ
A reverse mortgage is a loan that enables senior homeowners, age 62 and older, to convert part of their home equity into tax-free* income-without having to sell their home, give up title to it, or make monthly mortgage payments. The loan only becomes due when the last borrower (s) permanently leaves the home.
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st Reverse Financial Services, LLC
The amount you can borrow is based on a formula that factors in the age of the youngest borrower, the interest rate and the value and location of your property. We will help you in evaluating your options and calculate the maximum amount of money that will be available to you.
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What are my options when I use up all the money from a reverse mortgage?

Reverse-Mortgage-Info.net - Frequently Asked Questions
Continue living in the home, payment-free; sell the home and take the remaining equity; or refinance with a new reverse mortgage and get additional cash out (subject to qualifying).
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What are the advantages of a reverse mortgage?

Financial Freedom - Reverse Mortgage FAQ
No monthly mortgage payments. You need not pay back the reverse mortgage loan nor make any monthly mortgage payments until you permanently move out of the home. Tax-free money. Because the money you receive from a reverse mortgage is not considered income, it is tax free* and will not affect your Social Security or Medicare benefits. Freedom and flexibility. The money you get from a reverse mortgage is yours to use in any way you choose.
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What advice should I get before taking a reverse mortgage?

Financial Freedom - Reverse Mortgage FAQ
This is a federally mandated feature of the reverse mortgage process and is designed for your protection. The counselor, who is from an independent government-approved housing counseling agency, explains in detail the pro's and con's of all your reverse mortgage alternatives.
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How does a reverse mortgage pay out money?

Reverse Mortgage Loans in Georgia, Florida, Virginia, Delawa...
These types of loans are highly flexible and customizable. If one of the plans below doesn't fit your needs perfectly, contact us we'll put together a mortgage plan just for you! LINE OF CREDIT: Like a HELOC, a line of credit lets you get cash as needed. There is no specific time or amount you must withdraw. Money left in your line of credit increases in value each year and doesn't accrue interest.
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How is money paid to me from a reverse home mortgage?

Reverse Mortgages: Questions & Answers. Such as, "What is A ...
Reverse Mortgages enable you to turn the value of your home into cash to fund your retirement plan. Reverse Mortgages can be tailored to your needs. You can take cash out of your home: a credit line account that lets you customize when and how much is paid to you - changing over time as your needs change
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How do I payback the reverse mortgage money received?

Reverse Mortgage FAQs
By the traditional method of owners of the home passing away and your heirs inheriting your estate and home. Heirs may choose a realtor of their choice to sell your home at an agreed upon and fair future market price. Owners of the home and heirs may pay off the reverse mortgage at any time with no penalty.
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Will I be required to receive counseling before I can get a Reverse Mortgage?

Amity Reverse Mortgage FAQs
Yes. Counseling is required before an application is taken (for HECM's), and afterward for some proprietary programs. A choice of qualified counselors will be provided to you.
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What are the qualifications necessary to receive a reverse mortgage?

Reverse Mortgage FAQs
You must be a homeowner and your home must be your primary residence. All persons on the title to your home must be 62 years of age or older. Your home should be 50% or more paid for. No credit, income or health histories are required.
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How do I receive Reverse Mortgage payments?

Reverse Mortgage FAQ's - Reverse Mortgage Frequently Asked Q...
copy;2008 Manufacturers and Traders Trust Company. Member FDIC. All Rights reserved. Users of this website agree to be bound by the provisions of the M&T Bank website Terms and Conditions and Privacy Policy. Reverse Mortgage programs not available in Massachusetts. Other geographic restrictions apply.
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FAQ's -- Debt Management, Credit Counseling, Reverse Mortage...
Tenure: equal monthly payments for as long as the borrower occupies the property as their primary residence. Line of credit: unscheduled drawdowns on the loan in the amounts and at the times of the borrower's choosing. Modified tenure: a combination of monthly payments and a line of credit for as long as the borrower occupies the property as his/her primary residence.
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I limited as to how I use my reverse mortgage funds?

Clarity Mortgage Group
No. You can use the funds however you would like, it is your money. Borrowers have used reverse mortgage funds to supplement retirement income, travel, home improvement, healthcare expenses, education for loved ones, etc. the list goes on and on!
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Are there time limits for when I can use the money?

Initiatives for Women
Yes, the money must be used for expenses during 2007 (spring, summer or fall semesters) or spring 2008. Further, you must be affiliated with the University both at the time you apply (spring 2007) and when the activities you are funding take place. Yes, you can apply for expenses for spring 2007. This means you need to pay for these expenses yourself somehow and then hope you will get an award to allow you to retroactively cover the expenses. There is no guarantee you will get such an award.
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Payday Advance | How Payday Advances Work | Apply for a Payday Advance | FAQs | Articles | Other Loan Types
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Can my current income influence my ability to get a reverse mortgage?

Financial Freedom - Reverse Mortgage FAQ
No. Since reverse mortgage borrowers need not make monthly repayments, there are no income qualifications.
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What kinds of homes are eligible for a reverse mortgage?

Financial Freedom - Reverse Mortgage FAQ
First and foremost, the reverse mortgage must be on the borrower(s) primary residence, that is, where they live most of the year. Most reverse mortgages are taken on single family, one-unit homes. Some programs also accept two-to-four unit buildings that are owner-occupied. Some programs grant reverse mortgages on condominiums and manufactured homes built after June 1976. Mobile homes and cooperatives are generally not eligible for a reverse mortgage. Go to http://www.financialfreedom.
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Would a home that is in a "living trust" be eligible for a reverse mortgage?

Financial Freedom - Reverse Mortgage FAQ
Yes. In most cases a homeowner who has put his or her home in a living trust can usually take out a reverse mortgage. A review of the trust documents would be made by the reverse mortgage lender to determine if anything in the living trust would be unacceptable.
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If I take a reverse mortgage, will I still have an estate that I can leave to my heirs?

Financial Freedom - Reverse Mortgage FAQ
When you sell your home or no longer use it for your primary residence, you or your estate must repay the lender for the cash received from the reverse mortgage, plus interest and service fees. Any remaining equity belongs to you or your heirs. It's important to remember that you can never owe more than the home's appraised value when it is sold. None of your other assets will be affected by your reverse mortgage loan. No.
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