Reverse Mortgage Guide

A reverse mortgage is an innovative financial tool that allows homeowners age 62 and older to access the equity in their home. Homeowners can tap this resource to receive supplemental income as a lump sum, monthly payments, a line of credit or any combination of the three. A reverse mortgage can even help retirees purchase their dream home.

To qualify, you or your spouse just need to be 62 or older, must live in your home and continue to pay your homeowner’s insurance, maintenance costs and any other associated fees such as HOA dues.

Over one million homeowners have used the federally backed reverse mortgage to meet their retirement goals. The most popular reverse mortgage loan is the Home Equity Conversion Mortgage, or HECM (pronounced HEKUM), and is insured by the Federal Housing Administration (FHA), a branch of the U.S. Department of Housing and Urban Development (HUD). (Source: https://www.nrmlaonline.org/2019/12/11/annual-hecmendorsement-chart)

Learn more at MutualReverse.com.

Our reverse mortgage advisors are here to help you plan for the future you deserve.

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Which type of reverse mortgage is right for you?

We know that a reverse mortgage can help in a variety of ways. That’s why we offer several solutions for accessing the

in

home. Schedule time with a reverse mortgage

of the following

With a

mortgage, no monthly payments are required, and

maintain ownership until the last borrower leaves, as long as you continue to meet your basic loan requirements, such as

taxes, homeowner’s insurance and maintenance. You can choose to repay the loan at any time and can plan to leave the home to your heirs.

Getting Started

Step 1: Meet with a Reverse Mortgage Advisor

Our caring and trustworthy specialists will guide you through a free financial review and help determine which product helps you reach your goals. Your reverse mortgage advisor is with you every step of the way from application to funding.

Step 2: Complete HUD-Approved Counseling

Before applying for a reverse mortgage, you will meet with a third-party counselor to help you make the right choice for your situation. You can choose to complete counseling over the phone or in person, whichever you prefer.

Step 3: Submit Your Application and Receive Approval

After submitting your application, your reverse mortgage enters the processing stage and an FHA appraisal is conducted. We will also request financial information which we verify to ensure that a reverse mortgage is a financially sound long-term solution for you. Next, the loan moves to the underwriting process, where all the documents are reviewed, finalized and prepared for closing.

Step 4: Close and Receive Your Funds

Once your reverse mortgage application is approved, a final closing date can be scheduled. You can sign the reverse mortgage documents in the comfort of your own home or send them to one of our reverse mortgage advisors. Funds will be disbursed as you choose.

Consumer Safeguards

Just like any other mortgage loan, the HECM reverse mortgage is well-regulated and includes many protections in place for your peace of mind.

The HECM reverse mortgage is a non-recourse loan

You’ll never owe more than the value of your home or the initial amount borrowed. Should the balance grow greater than the value of your home, the Federal Housing Administration (FHA) will cover the difference at the time the loan is due. Additionally, lenders can’t seek any other assets other than the home to repay the balance or other costs.

Borrowers must complete a financial assessment and counseling

To ensure you are making the best financial decision for you and your estate, the FHA requires loan prospects complete a financial assessment as well as counseling with an approved Department of Housing and Urban Development (HUD) counselor.

Your non-borrowing spouse is protected

If your spouse isn’t included on the loan, there are special provisions in place to guarantee your loved one is able to remain in the home after your passing. As long as loan requirements continue to be met, including maintenance, property taxes and homeowner’s insurance, your spouse can continue to defer loan repayment and live in the home as their primary residence.

There are limits to the amount you can borrow

To plan for long-term financial security, most reverse mortgages will only allow access to 60% of your initial loan amount for the first year after closing. Your reverse mortgage advisor will work with you to calculate how to best maximize your funds.

There is no prepayment penalty

You may choose, at any time, to repay the HECM reverse mortgage without any penalty or additional charges. If you change your mind shortly after your loan closes, you have three days to cancel most HECM loans and your reverse mortgage advisor can help you through that process if needed.

Learn more at MutualReverse.com.

Common Questions

How does a reverse mortgage work?

A reverse mortgage is a loan that allows older homeowners to convert their home equity into supplemental income. Your home is the only asset used to secure the loan and the loan can be paid back any time.

Will I continue to own my home?

Yes. Just like any other mortgage, you will continue to own your home as long as you meet the loan’s basic requirements. ‘

Do I qualify for a reverse mortgage?

It’s fairly simple to quality for most reverse mortgages. As a borrower:

• You or your spouse must be age 62 or older

• You must have sufficient equity in your home

• Your home needs to be your primary residence

• You need to be able to meet the basic loan requirements

What are my loan requirements?

Like most mortgage loans, you will need to meet basic obligations. These include:

• Paying ongoing property taxes, insurance and association dues if applicable

• Maintaining home repairs

• Living in the home as your primary residence

Will my children still receive an inheritance?

After the home is sold and the reverse mortgage is paid off, all remaining equity will belong to your heirs. No other assets besides the home are used to secure the loan.

What are the costs of a reverse mortgage?

Loan costs are similar to those of a traditional mortgage and are federally regulated. Most costs can be paid from the proceeds of the reverse mortgage and may include an origination fee, title insurance, FHA mortgage insurance and appraisal.

Can I qualify if I already have a mortgage?

Yes. In fact, your existing mortgage will be paid off with the money from your proceeds, eliminating your monthly mortgage payment - a popular benefit for many homeowners.

Borrower must occupy home as primary residence and remain current on property taxes, homeowner’s insurance, the costs of home maintenance, and any HOA fees.

Mutual of Omaha Mortgage, Inc. dba Mutual of Omaha Reverse Mortgage, NMLS ID 1025894. 3131 Camino Del Rio N 1100, San Diego, CA 92108. Alabama Consumer Credit License 22123; Alaska Broker/Lender License AK1025894. Arizona Mortgage Banker License 0926603; Arkansas Combination Mortgage Banker/Broker/Servicer License 109250; Licensed by the Department of Financial Protection & Innovation under the California Residential Mortgage Lending Act, License 4131356; Colorado Mortgage Registration 1025894; Connecticut Mortgage Lender License ML-1025894; Delaware Lender License 028515; District of Columbia Mortgage Dual Authority License MLB1025894; Florida Mortgage Lender Servicer License MLD1827; Georgia Mortgage Lender License/Registration 46648; Hawaii Mortgage Loan Originator Company License HI-1025894; Idaho Mortgage Broker/Lender License MBL-2081025894; Illinois Residential Mortgage Licensee MB.6761115; Indiana-DFI Mortgage Lending License 43321; Iowa Mortgage Banker License 2019-0119; Kansas Mortgage Company License MC.0025612; Kentucky Mortgage Company License MC707287; Louisiana Residential Mortgage Lending License 1025894; Maine Supervised Lender License 1025894; Maryland Mortgage Lender License 21678; Massachusetts Mortgage Broker and Lender License MC1025894; Michigan 1st Mortgage Broker/Lender/Servicer Registrant FR0022702; Minnesota Residential Mortgage Originator Exemption MN-OX-1025894; Mississippi Mortgage Lender 1025894; Missouri Mortgage Company License 21-2472; Montana Mortgage Broker and Lender License 1025894; Nebraska Mortgage Banker License 1025894; Nevada Exempt Company Registration 4830. Licensed by the New Hampshire Banking Department, Mortgage Banker License 19926-MB; Licensed by the New Jersey Banking and Insurance Department. New Jersey Residential Mortgage Lender License 1025894; New Mexico Mortgage Loan Company License 1025894; North Carolina Mortgage Lender License L-186305; North Dakota Money Broker License MB103387; Ohio Residential Mortgage Lending Act Certificate of Registration RM.804535.000; Oklahoma Mortgage Lender License ML012498; Oregon Mortgage Lending License ML- 5208; Pennsylvania Mortgage Lender License 72932; Rhode Island Lender License 20163229LL. Rhode Island Loan Broker License 20163230LB; South Carolina BFI Mortgage Lender/Servicer License MLS-1025894; South Dakota Mortgage Lender License ML.05253; Tennessee Mortgage License 190182; Texas Mortgage Banker Registration 1025894; Utah Mortgage Entity License 8928021; Vermont Lender License 6891; Virginia Mortgage Broker and Lender License, NMLS ID #1025894 (www.nmlsconsumeraccess.org); Washington Consumer Loan Company License CL-1025894; Wisconsin Mortgage Banker License 1025894BA; Wyoming Mortgage Lender/Broker License 3488. (866) 200-3210. Subject to Credit Approval. Charges such as an origination fee, mortgage insurance premiums, closing costs and/or servicing fees may be assessed and will be added to the loan balance. As long as you comply with the terms of the loan, you retain title until you sell or transfer the property, and, therefore, you are responsible for paying property taxes, insurance and maintenance. Failing to pay these amounts may cause the loan to become immediately due and/or subject the property to a tax lien, other encumbrance or foreclosure. The loan balance grows over time, and interest is added to that balance. Interest on a reverse mortgage is not deductible from your income tax until you repay all or part of the interest on the loan. Although the loan is non-recourse, at the maturity of the loan, the lender will have a claim against your property and you or your heirs may need to sell the property in order to repay the loan, or use other assets to repay the loan in order to retain the property. These materials are not from HUD or FHA and the document was not approved by HUD, FHA or any Government Agency. For licensing information, go to: www.nmlsconsumeraccess.org