Reverse Mortgage Answers

Success Stories

>TRUE STORY

Don’t fit “debt to income” ratios?

An elderly woman went into her local bank branch to apply for a home improvement loan in order to replace the roof and gutters on her home as well as to buy a new air conditioning unit. Because she is on a low fixed income her “debt to income” ratio didn’t fit the bank’s profile and she was declined for the loan. The banker suggested she speak with a reverse mortgage consultant about the possibility of getting a reverse mortgage. Despite the “debt to income” problem, she was able to easily qualify for the government program. The reverse mortgage allowed her to receive a lump sum from which she was able to make all of her necessary repairs, pay-off some small debts and leave the rest of the money in an open line of credit to be accessed whenever she wanted. Being able to do this with no payments, principle or interest, was very important to her on a fixed income!

In a Reverse Mortgage bad credit may not matter

A 75 year old Veteran has a home worth 170K and he owes $85K combined on his current 1st and 2nd mortgages. He is on a fixed income and is barely making it. He is turned down by his mortgage broker on a VA loan because of his low credit score and he still has $5000 left to pay on a Chapter 13 bankruptcy! He also has 2 liens on his home from a bail bondsman because he bailed his son out of jail, twice. The HECM reverse mortgage pays off all 5 items and, although he receives no cash, the $1800 he has been spending each month is now his to live on. As you can imagine his life will be quite different now.

The Seniors in your life may not be as well off as you think!

After learning about Reverse Mortgages a regular mortgage loan officer started thinking about her grandfather. After we talked about the specifics it occurred to her that her grandparents may not be as well off as they seemed, even though their $350,000 home is paid for along with their cars. One of the telltale signs was that Grandpa would not let Grandma run the A/C in the 100-degree weather! She spoke with them and they agreed to sit down and talk. A Reverse Mortgage Professional was able to show them how to convert their home equity into a more comfortable living. Now they will be receiving over $150,000 in the form of $1000+/month Payments tax free for the rest of their lives. Even though a proud senior didn’t want to admit to need, it was still there. Think about the seniors in your life.