Q: How do I know if I qualify for a reverse mortgage?

A: You must own your home and all owners must be at least 62 years of age. You should have significant equity in the home, but you do not need your existing mortgage to be completely paid off. A reverse mortgage can help pay off existing mortgages so you can stop making any future payments! In fact, you must use your reverse mortgage proceeds to pay off any existing mortgage balances.

You must also live in your home at least half of the year. Eligible home types include single family homes, two- to four-unit homes, condominiums, planned urban developments, townhouses, manufactured homes, and mobile homes. Cooperative apartments are not eligible.

Other conditions may apply. Our knowledgeable Reverse Mortgage Advisors can explain everything to you once they fully understand your personal situation.

Q: Do I need to make any ongoing payments?

A: No. Unlike traditional mortgages or home equity lines of credit, you do not need to make any ongoing payments.

Q: Are there any out-of-pocket expenses associated with applying for a reverse mortgage?

A: No. All closing costs can be financed with the proceeds from your reverse mortgage.*

Q: Can I lose my home?

A: You will still own your home since you retain the title. Dover Mortgage can set aside proceeds from your reverse mortgage to ensure that property taxes and homeowner’s insurance are paid, should you choose that option. We can even help you set aside cash for future home repairs. Similar to most mortgages, as long as you continue to live in your home, keep up repairs, and pay property taxes and insurance, you can stay in your home as long as you choose.

Q: What happens to the house when I pass away?

A: If your spouse is also listed on your home’s title, he/she will be able to continue residing in the home and receiving the benefits of a reverse mortgage. If you do not have a surviving spouse, all equity remaining in the house will pass to your heirs. Your heirs can choose to sell the house, pay off the reverse mortgage, or apply for a traditional mortgage to finance the outstanding balance. We will work with your heirs to help them decide how to proceed.

Q: What are the interest rates on this product?

A: All HECM interest rates are set by The Department Of Housing and Urban Development.

Q: What are the fees associated with this product?

A: Costs associated with a reverse mortgage are like those you’ll find with traditional mortgages. For example, there are closing costs (including appraisal fees, origination fees, mortgage insurance, title insurance, etc.) and servicing fees. The closing costs can be deducted from the reverse mortgage, so there are no out-of-pocket expenses. *

Q: Do I have multiple product options?

A: Yes. With First Financial Home Mortgage, you can choose from multiple reverse mortgage options. Our experienced Reverse Officers will help you make the decision that best suits your individual needs.

Q: Am I required to use all of my available credit?

A: No. You can select a product that has a line of credit that will remain available as home equity should you never use the available line. With the HECM product, your available credit line actually grows at a rate relative to the current APR on the reverse mortgage.

Q: Are there any income requirements?

A: No. Unlike a home equity line of credit, there are no income requirements

Q: Do I lose any of my federal benefits?

A: Social Security and Medicare benefits are not affected. Supplemental Security Income (SSI) and Medicaid are not affected either, as long as all monthly cash advances are fully spent each month. First Financial Home Mortgage is happy to assist you in selecting the plan that will work best for you.

Q: Can I pay back the equity I’ve borrowed?

A: Yes. At any time you choose to increase the equity in your home, you can do so by paying all or a portion of your reverse mortgage balance

Q: Are the proceeds tax-free?

A: Yes, all advances you receive through a reverse mortgage are tax-free. In addition, the interest paid on the outstanding mortgage balance may be tax-deductible, but generally not until the reverse mortgage balance is paid.

Q: How does a reverse mortgage compare to a traditional home equity line of credit?

A: Both products allow you to turn the equity in your home into accessible proceeds. But, unlike a traditional home equity line of credit, a reverse mortgage does not require that you have an existing income stream in order to qualify, since it is designed to supplement your income. And, unlike a home equity line of credit, with a reverse mortgage, you make no monthly payments and can have no out-of-pocket expenses. *

Q: Once I begin the application process, am I committed to closing my reverse mortgage?

A: No, you are not required to close and, legally, you have at least a three-day “Right of Rescission” period after closing to submit, in writing, a request to nullify the entire reverse mortgage.

All answers above are provided specifically for FHA’s HECM product. Please contact one of our Reverse Mortgage Specialist for details about additional product offerings.

To request personalized information call First Financial Home Mortgage at 305-817-9300.

*The only exception is that you may need to pay for your home appraisal in advance.