Looking to make the most of the equity you've acquired in your home? Today, there are more homeownership options for retired individuals and couples than ever before. Whether you're looking to pay off bills, or would like additional income to enjoy your retirement, a reverse mortgage may be the answer for you!

If you are age 62 or older, own and live in your home free and clear or have a minimal remaining mortgage balance, our reverse mortgage programs can help you receive extra income. A reverse mortgage allows you to borrow against the equity you've established in your home without repaying the loan for as long as you live there. Instead of making monthly payments, you can choose to receive them! That's the "reverse" part.

The income received through a reverse mortgage can be used for a variety of purposes. Just like a regular refinance, you are not restricted in how to use the funds.

Examples of potential uses for funds received through a reverse mortgage include:

• Invest in CD's, annuities
• Supplement retirement income
• Cover medical expenses
• Make home repairs or improvements
• Pay property taxes
• Pay for in-home care
• And more ...

For many homeowners, a reverse mortgage is an effective way to convert home equity into flexible, tax free* income. The benefits are numerous:

• Continue to live in and own the home.
• Receive tax-free income from the cash advances.
• Obtain immediate cash advances in addition to monthly income.
• Enjoy the flexibility of determining how you wish to receive you cash disbursements:
  Fixed monthly payments, a line of credit**, a lump sum cash advance or a combination of the plans.
• Adjust your payment option to meet your current circumstances.
• Repay the loan at any time without penalty.
• Have peace of mind knowing that you and your heirs have no personal liability for the repayment of the loan since it is secured by your home.
• Relax knowing that you owe nothing until after you no longer occupy the home as your principal residence.

Customers have unique needs. Some prefer to get the entire amount up front, while others would prefer a steady monthly payment to supplement their other income. Regardless of which distribution plan you pick, you are able to adjust your plan as often as you wish to accommodate changing needs.

There are three different kinds of reverse mortgage distribution plans to fit your needs and desires.

• Lump Sum Cash Advances
  Cash is immediately available (often used to payoff an existing mortgage)
• Term
  Equal monthly payments for a fixed period of months selected.

Your loan will be made based on an adjustable rate loan. You have the option of choosing a monthly or annually adjusting rate. Rates are linked to the one-year U.S. Treasury Security Rate.

The change in the interest rate has no effect on the amount of or number of loan advances you can receive, but causes the loan balance to grow at a faster or slower rate.

The loan is due and payable when you no longer occupy the property as your principal residence or fail to comply with the loan agreement.

The only requirement is that the loan be repaid in one payment. There is no requirement that the property be sold, only that the loan is repaid. The may occur either through the sale of the home or through other resources (such as savings or possibly applying for a new mortgage).

Loan proceeds are not considered income and will not affect Social Security or Medicare benefits because these programs are not based on need.

However, your monthly reverse mortgage advances may affect your eligibility for some other programs. Consult your local program offices to determine how, or if, monthly reverse mortgage payments might affect your specific situation.

The process of getting a reverse mortgage involves several phases.

This is the phase that you are in now. You are taking the time to learn about the reverse mortgage program to determine if it is appropriate for your situation.

As part of the reverse mortgage application process, you are required to participate in a consumer education session with a HUD-approved counselor.

The counselor will explain the legal and financial obligations of the program as well as any alternatives you may have. A reverse mortgage is not for everyone, so this step will help you ensure you are making the right decision.

After the session has been completed, you are given a Certificate of Borrower Counseling, which is valid for 180 days after the session. You must then present this certificate to the lender as proof that you have attended and completed the counseling session.

Your home mortgage consultant will sit down with you and help you complete and sign the loan application. Once you have submitted your completed application, you will receive a disclosure the estimated cost of the loan, as required by federal Truth in Lending Act.

A professional appraiser will be used to determine the value of your home which will be used to calculate the amount you can receive as part of your reverse mortgage.

Most lenders will require that you show proof that you have purchased home insurance or hazard insurance which will protect you incase you home is destroyed as a result of fire, theft or some other disaster. If you already have home insurance, make sure your policy is up to date, payments are current and, you have the minimum amount of coverage required by your lender (if applicable). You may, however, want to purchase a larger policy to make sure you're protected from additional losses.

Your lender will also require a mortgage insurance policy. This will protect you and your heirs by insuring that the amount required for repayment of the loan will never exceed the value of your home when payment is due. An initial premium will be due upon closing your loan. This payment can be financed as part of your reverse mortgage proceeds.

Loan processing typically takes approximately 6-8 weeks before the closing can take place. The closing for a reverse mortgage typically takes place in your home. The loan documents, including the mortgage deed of trust, are forwarded to you to simply sign where directed and pay any applicable closing costs. Your then have 3 days in which you can cancel the mortgage if you change your mind. Any cash disbursements due to you will be forwarded from the processing center after 3 days have expired.

With a reverse mortgage, you have responsibilities similar to those associated with a traditional mortgage.

You are expected to:

• Pay property taxes
• Keep adequate property insurance up-to-date
• Maintain the home

The eligibility requirements are quite simple. There is no income, employment or credit qualifying restriction.

• All homeowners must be age 62 or older and occupy the property as their principal residence
• The home must be owned free and clear or have a remaining mortgage balance which can be paid off by a reverse mortgage
• The property must be a single-family or a two-to-four unit dwelling
• Townhomes, detached homes, condominium units, planned unit developments (PUDs) and some manufactured homes are eligible
• The home must meet HUD minimum property standards. In some cases, home repairs can be made after the closing of a reverse mortgage.

The maximum amount that can be borrowed is based on the following factors:

• The age of the youngest homeowner
• The appraised value of the home
• The current interest rate
• The county in which the property is located

In general, the more your home is worth, the older you are, and the lower the interest rate, the more you'll be able to borrow.

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