Reverse mortgages – Top uses and recent changes

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By Alain Valles, CRMP, CSA, MS, MBA, Nonprofit Managing Director

781-724-6221/av@hhcp.org

Alain Valles

As Managing Director of the self-funded nonprofit charitable mortgage company, Helping Hands Community Partners, our mission is to educate people about housing options – including reverse mortgages.

 

A reverse mortgage gives a qualified borrower the option to receive cash as a lump sum, a monthly check, or a line of credit with NO minimum required monthly mortgage payment.  The homeowner is, of course, required to pay ongoing real estate taxes and insurance and meet other loan guidelines. By not having a monthly mortgage payment, thousands of eligible homeowners have utilized a reverse mortgage to:

  • Increase monthly cash flow
  • Pay off a current mortgage or home equity line
  • Payoff credit cards
  • Pay real estate taxes & property insurance
  • Complete needed home repairs or desired improvements
  • Ability to pay for at home care or nursing home expenses
  • Finalize divorce situations
  • Pay IRS obligations
  • Settle legal matters
  • Use a reverse to purchase a new home
  • Purchase a second home or condo in warmer weather
  • Install a new septic system
  • Purchase a new or used car
  • Buy an RV
  • Support grandchildren educational needs
  • Gift to adult children for their home purchase dreams
  • Prepay funeral expenses
  • Estate & financial planning purposes
  • Cash reserves for unforeseen emergency life events 
  • Estate planning
  • Lifestyle improvement options
  • Travel
  • Home accessibility improvements
  • The option of receiving a lump sum of cash, a monthly distribution, a line off credit or a combination of the three – all income tax free
  • Peace of mind knowing that cash is available if needed
  • And, the list goes on!  What are your needs and desires?

 

The key point is a reverse mortgage is a very flexible financial tool that can achieve varied goals.  The first step is to obtain accurate factual information. 

A reverse mortgage might not be the magic wand to solve all the above life challenges and goals, but it very well could be the next best thing.  Take the first step and get informed. I would enjoy the opportunity of having that conversation!  

 

Obtain your free “How to Use Your Home to Stay at Home” 36-page book approved by the Department of Housing and Urban Development (HUD) and published by the National Council on Aging.

 

We will also send you a detailed summary based on your:

  • Estimated home value;
  • Current mortgage balance, if any;
  • A few financial questions; and
  • Your age

 

Please give me a call at 781-724-6221 or email reversemortgage info@hhcp.org to receive your free copy of “Use Your Home to Stay at Home,”  the official reverse mortgage consumer booklet approved by the U.S. Department of Housing & Urban Development and published by the National Council on Aging.  This is a great place to get basic information. 

 

BREAKING NEWS:  

  1.  Condominium rules for reverse mortgage have changed for the better.  The requirement that the entire complex must be FHA approved has changed to only one unit.  Please call for details.
  2. A portfolio “jumbo” reverse mortgage is scheduled to be approved in Massachusetts.  This may be of benefit for homes in excess of $800,000. The maximum loan amount will be $1.5 million.  Please call for details.
  3. We’re hiring!  Please contact me If you or a friend have interest in becoming a reverse mortgage specialist.   Nothing is more rewarding than helping someone with diminishing financial hope 

Alain Valles is a managing director of Helping Hands Community Partners, Inc. and was the first designated Certified Reverse Mortgage Professional in New England.  He obtained a master of science from the M.I.T. Center for Real Estate, an MBA from the Wharton School, and graduated summa cum laude from UMass Amherst. He can be reached directly at 781-724-6221 or by email at av@hhcp.org.