CPA and Accountant Guidelines for Reverse Mortgages

Posted on December 14, 2016 · Posted in Connecticut Mortgage Company, Connecticut Reverse Mortgage

What CPAs need to know about Reverse Mortgages



Hello my name is David Tortora and I work for Northeast Financial in Middletown, CT.  I would like to talk about reverse mortgages and how CPAs can educate their clients about them as it may be a useful option.


A reverse mortgage is a type of loan that allows you to use equity in your home while you still live in home with out making any payments back. The proceeds from a reverse mortgage are generally tax free and are a great way to improve the quality of your clients life.


There are three ways a client can access the equity in their home they are lump sum, set up an equity line or have lender make monthly payments to the borrower at what ever payment they choose..


As an Accountant you may use the reverse mortgage as an estate planning tool as well. I have done many reverse mortgages and it can be the perfect product for a lot of people.


Some guidelines you should know about:


  1. 62 years or older
  2. Must be a primary residence
  3. Must complete reverse mortgage counseling
  4. Must show the ability to pay taxes and insurance on their own otherwise bank may hold back a reserve account.


So as you can see this is an option that you should explore with your clients that do qualify.  Please call me today if I can assist you or your client in any way.


IMG_0126David Tortora NMLS 88166
Company NMLS 117273
210 South Main Street
Middletown CT 06457