A reverse mortgage loan can be an effective financial planning strategy for homeowners age and older — but it’s not right for everybody. By doing your homework,
you’ll better understand the pros and cons and can determine if a reverse mortgage is the best way to supplement your retirement income and live the lifestyle you’ve envisioned.
*This material has not been reviewed, approved or issued by HUD, FHA or any government agency. The company is not affiliated with or acting on behalf of or at the direction of
HUD/FHA or any other government agency.
†Consult a financial professional to determine the potential financial implications of obtaining a reverse mortgage loan.
‡Not applicable in all states; some states may impose a higher age requirement. Visit www.reversefunding.com/equity-elite for details.
§Equity Elite Reverse Mortgage (“Equity Elite”) is Reverse Mortgage Funding LLC’s proprietary loan program, and it is not affiliated with the Home Equity Conversion Mortgage
(HECM) loan program, which is insured by FHA. Equity Elite is available to qualified borrowers who also may be eligible for FHA’s HECM program or are seeking loan proceeds that
are higher than FHA’s HECM program limit. Equity Elite currently is available only for eligible properties in select states. Please contact your loan originator to see if it is
currently available in your state.
Upon a maturity event, any non-borrowing individuals with an ownership interest in the property, including non-borrowing spouses, will have a short period of time (for example,
30 days from a due and payable letter or an alternate time specified by the loan servicer if extensions are available under the circumstances) to purchase the property from the
estate or, if the non-borrower inherits the property, pay the loan in full using any sources of funds available to them. Any non-borrowing individual, including a non-borrowing
spouse, should have a plan to pay off an Equity Elite reverse mortgage upon the borrower’s death or any other maturity event. If the non-borrower is unwilling or unable to
purchase the property or pay the loan in full,
there is no protection for the non-borrower (including a non-borrower spouse) to maintain an interest in the home or to continue
residing in the home past the maturity event and the non-borrower may be evicted upon foreclosure.
The FHA HECM program has protections in place for certain non-borrowing parties,
so a reverse mortgage applicant with certain non-borrowing parties should strongly consider an FHA-insured HECM loan (see HECM guidelines or ask an RMF representative for details).
Under the Equity Elite reverse mortgage loan program, a maturity and/or default event occurs when the last surviving borrower no longer lives in the home as his or her primary
residence for at least 12 months, the property charges (including taxes, insurance, or any other property charges) are not paid, required repairs are not completed or the property
is not maintained, or any other maturity and/or default event, as specified in the Security Instrument, occurs.