Alabama Reverse Mortgage Loan
Information
 Aliant
Bank and Aliant Mortgage are happy to offer Reverse Mortgage Loans!
Aliant was established in 1900, and by being locally owned and
operated here in Alabama, Aliant Bank can provide you with the
proper “hands on” service that is required with the intricacies of
this mortgage product. Janie Hannah is our Reverse Mortgage loan
expert and can be reached at 205-823-1727 or
jhannah@aliantbank.com
for more information.
The
Reverse Mortgage Loan programs (HECM, or Home Equity Conversion
Mortgage, as offered by HUD/FHA) can help seniors with a variety of
situations. For example, if the drop in the markets has reduced your
retirement assets to the point that you would prefer to draw less
from them, or if you actually need additional cash flow, a reverse
mortgage may be right for you. Or if you are in need of home repairs
or would like to take that long-planned vacation, you might consider
a reverse mortgage. And, keep in mind that there is no credit or
income qualifying and no monthly payment associated with reverse
mortgages!
Below,
please find the Basics you need to know and Frequently Asked
Questions and Answers, and of course, feel free to call or email
Janie for additional reverse mortgage (HECM) loan information at any time!
-
All
borrowers must be at least 62 years old (anyone on Title to
property)
-
Must be
primary residence, occupied at least 6 months of the year
-
Credit &
Income are NOT factors, so a Reverse Mortgage may be used to avoid
foreclosure or bankruptcy
-
Money
received is not income, so is not taxable, but may affect SSI or
Medicaid
-
Your
taxes and Social Security benefits are typically not affected but
you should consult a tax advisor for your own personal tax situation
-
No
restrictions on how money received is used
-
No
payments or payoff due until last borrower permanently vacates
property; property taxes & homeowner’s insurance must be paid and
property maintained
REVERSE MORTGAGE Q & A
What is a HECM?
What are the Basic Requirements for a
Reverse Mortgage?
How is a Reverse Mortgage
different from a Home Equity Loan?
How much money can I get?
How can I receive the cash from a
Reverse Mortgage?
How can I use the proceeds?
What if I still owe money on a first
or second mortgage?
Will my current income
affect my eligibility?
How will a Reverse
Mortgage affect my government benefits?
Are interest rates fixed or variable?
Are there fees associated with a Reverse
Mortgage?
What has to be repaid when the loan becomes
due?
Will a Reverse
Mortgage affect the estate I leave to my heirs?
When will the principal and interest
charges become due?
What if one of the
Co-Borrowers passes away?
What is a HECM?
A HECM is a Home Equity Conversion Mortgage, and is the formal name
for the standard reverse mortgage. The HECM may also be referred to
as a “HUD reverse mortgage” or a “FHA reverse mortgage”.
> return to top
What are the Basic Requirements
for a Reverse Mortgage?
-
62 years old or older
-
Own & occupy your home as your Primary Residence
-
Home must meet
HUD minimum property standards
-
Financial counseling by approved provider is required
> return to top
How is a Reverse
Mortgage different from a Home Equity Loan?
-
With a Home Equity Loan, you need to make monthly payments
-
With a Reverse Mortgage, you don’t need to make monthly mortgage
payments as long as you maintain the home as your primary
residence
> return to top
How much money can I get?
This depends on several factors:
-
Your age (age of youngest owner on Deed or Title)
-
Type of Reverse Mortgage product selected
-
Appraised value of your home
-
Mortgage balance(s) outstanding, if any
-
FHA lending limits for your area
> return to top
How can I receive the cash
from a Reverse Mortgage?
> return to top
How can I use the
proceeds?
The things you want and need:
> return to top
What if I still owe money on a
first or second mortgage?
You may still be eligible for a Reverse Mortgage depending on the
amount of your remaining mortgage versus the value of your home. The
funds from the Reverse Mortgage would first be used to pay off
whatever existing mortgages you have on the property.
> return to top
Will my current
income affect my eligibility?
No, you don’t make monthly repayments with a Reverse Mortgage, so
there are no income qualifications.
> return to top
How will a Reverse
Mortgage affect my government benefits?
The funds from a Reverse Mortgage do not affect regular Social
Security or Medicare benefits. However, needs-based benefits, such
as Medicaid and Supplemental Security Income (SSI) may be impacted.
You should contact a tax professional about your particular
situation.
> return to top
Are interest rates fixed or variable?
Most Reverse Mortgages have variable rates that are tied to a
financial index and will vary according to market conditions and
product. We offer through our investor both variable and fixed rate
Reverse Mortgages. Note: in a rising interest rates market, the
balance on a variable rate Reverse Mortgage will grow quicker than
on a fixed rate Reverse Mortgage.
> return to top
Are there fees associated with a
Reverse Mortgage?
Most Reverse Mortgage have:
These can be paid from the proceeds of the Reverse Mortgage itself, so
there is no immediate burden to you. The costs are added to the
principal and paid along with the interest accrued on the total
principal balance when the loan becomes due.
> return to top
What has to be repaid when the loan
becomes due?
The reverse mortgage loan balance – including any fees that have been
added to the principal and the accrued interest on the total
principal balance – needs to be repaid. This is usually done through
the sale of the house or other assets. Repaying the Reverse Mortgage
through a conventional mortgage refinance is also an option.
> return to top
Will a Reverse
Mortgage affect the estate I leave to my heirs?
When the loan becomes due, you or your estate must repay the lender
for the cash received from the Reverse Mortgage plus interest and
service fees. You or your estate can choose how to repay the loan –
by selling the property, by refinancing, or by using other assets.
Any sales proceeds in excess of the loan balance belong to you or
your heirs. If you sell your home for a fair market price that is
less than the loan balance, then there would be no proceeds to keep,
but the bank cannot claim from you or your estate more than the sale
amount received.
> return to top
When will the principal and
interest charges become due?
The Reverse Mortgage loan must be paid in full when one of the
following occurs:
-
All Borrowers permanently move out of the house
-
The last surviving Borrower passes away, sells the home, or
fails to live in the home for 12 consecutive months.
-
You fail to pay property taxes or insurance
-
You let the property deteriorate beyond what is considered
reasonable wear and tear, and do not correct the problems.
> return to top
What if one of the
Co-Borrowers passes away?
The surviving borrower can continue to own and live in the home and
enjoy the benefits of a Reverse Mortgage.
> return to top
For Qualifying, Questions or information on Reverse Mortgages, please call:
Janie Hannah @ 205-823-1727.
|
