The Reverse Specialists
Brad Saarela
Broker/Owner of Somerset Lending
President - Reverse Mortgage Division & Reverse Mortgage Specialist
Licensed Real Estate Professional ; Loan Originator
License Number: 6502-385139
NMLS Number: 134137 Brad@Somersetlendingcorp.com
Amaan Archer
Vice President - Reverse Mortgage Division & Reverse Mortgagee Specialist
Licensed Real Estate Professional ;
Loan Originator
License Number 6501-420676
NMLS Number: 2032534
Somerset Lending - Reverse Mortgage Division
Reverse Mortgages - Simply Understood
Reverse Mortgages
Imagine, Never Making a Monthly Mortgage Payment Again!
With enough equity in your home you can potentially live in your home for the rest of your life and retain ownership, with no monthly mortgage payments.
Do you want extra money to retire comfortably, update your home, travel, buy a new car, pay medical bills or prescription drug costs, and more? You may use funds you receive through a reverse mortgage for practically any legitimate purpose.
Reverse mortgages are unique in the sense is that they give you the ability to convert the equity you’ve built in your house into usable funds. A Home Equity Conversion Mortgage (HECM) is the only kind of reverse mortgage insured by the Federal Housing Administration (FHA). Since HECMs are government-regulated, they come with unique requirements.
Will I Qualify?
You will still be responsible for paying taxes, insurance, any applicable homeowners association fees, and maintaining the home according to HUD guidelines. If you have an outstanding mortgage on your home, you will need to use funds from the reverse mortgage to pay the old loan off completely.
You may qualify for a HECM if:
- You are at least 62 years old
- You own your home and use it as your primary residence
- Your home meets existing FHA standards
How Much Can I borrow?
HECM requirements may restrict how much money you receive in the first 12 months from the loan’s closing. Setting aside funds from the money you receive to pay for insurance and taxes might also be a requirement.
The maximum amount you may borrow depends on multiple factors such as:
- Age of the youngest borrower
- Existing interest rates
- Lesser of the FHA limit and your home’s appraised value
How Do repayments WorK?
NO DEBT TO HEIRS
WHICHEVER IS LESS
WHICHEVER IS LESS
When the home is sold or no longer used as a primary residence, the cash, interest, and other HECM finance charges must be repaid. All proceeds beyond the amount owed belong to your spouse or estate. This means any remaining equity can be transferred to heirs. No debt is passed along to the estate or heirs.
WHICHEVER IS LESS
WHICHEVER IS LESS
WHICHEVER IS LESS
The estate or the borrower’s heirs may choose to repay the amount owed toward the reverse mortgage and keep ownership of the home. Since reverse mortgages are “non-recourse” in nature, if the home is sold to repay the loan, you or your heirs will never have to repay more than the property’s value or the loan amount, whichever is lesser.
The Saarela "Umbrella" Team of Companies
Somerset Lending
Andrews Realty Group
Andrews Realty Group
Home & Loans Made Easy! Whether your are refinancing, buying a home or thinking about a Reverse Mortgage, Somerset Lending is here to meet your needs.
Andrews Realty Group
Andrews Realty Group
Andrews Realty Group
Start searching for your perfect first home, next home or forever home with one of our highly skilled agents.
University Title
Andrews Realty Group
University Title
Whether you are listing your house for sale by owner or working with a real estate agent, we’ve got you covered. University Title Agency will make the closing easy.
