Connecticut Mortgage: How Does a Reverse Mortgage Work?

Posted on November 6, 2017 · Posted in Connecticut Reverse Mortgage

Reverse mortgages are for Connecticut homeowners as well as homebuyers. The reverse mortgage program is a Home Equity Conversion Mortgage or HECM that is insured by FHA.

 

To qualify for the reverse mortgage program you have to meet the following criteria:

 

–       Be at least 62 years old.

–       Use the property as your primary residence.

 

The program takes your age and the amount of equity that you have in your home and gives you a certain percentage that you are allowed to borrow.  With the HECM program the older you are the more you are allowed to borrower.

 

The most common question from those considering a reverse mortgage are:

 

–       How do I take the money?

–       What can I use the money for?

 

You have several options to take the proceeds from your reverse mortgage:

 

–       Take all the proceeds as a lump sum

–       Take some of the proceeds and leave the rest for a later date if you need to borrow more.

–       Take the proceeds as a monthly payment.

–       Take a lump sum and a monthly payment.

 

Secondly is what can I use the money for.  There are several possibilities:

 

–       Use the proceeds for home improvements.

–       Take the proceeds and payoff debt.

–       Take the money and supplement the income you currently have.

 

The reverse mortgage program has been around for several years and is growing in popularity due to the rapid growth of the over 60+ population.  If you have any questions or would like to see if you qualify I can be reached at 860-334-1354 or email Craig@northeast-mortgage.com.

 

Thanks,

 

craig picCraig Thibeau
Senior Loan Officer
North East Financial Middletown, CT
Ph 860-334-1354
NMLS  398576 Company NMLS 117273
craig@northeast-mortgage.com
www.northeast-mortgage.com