{"id":1671,"date":"2022-09-09T16:01:11","date_gmt":"2022-09-09T16:01:11","guid":{"rendered":"https:\/\/applyreverse.com\/?page_id=1671"},"modified":"2022-09-19T21:17:14","modified_gmt":"2022-09-19T21:17:14","slug":"how-a-reverse-mortgage-works","status":"publish","type":"page","link":"https:\/\/applyreverse.com\/?page_id=1671","title":{"rendered":"How a Reverse Mortgage Works"},"content":{"rendered":"\t\t<div data-elementor-type=\"wp-page\" data-elementor-id=\"1671\" class=\"elementor elementor-1671\">\n\t\t\t\t\t\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-cb74429 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"cb74429\" data-element_type=\"section\" data-settings=\"{&quot;background_background&quot;:&quot;classic&quot;}\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-d3cc5f2\" data-id=\"d3cc5f2\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t\t\t<section class=\"elementor-section elementor-inner-section elementor-element elementor-element-5d3cda8 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"5d3cda8\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-inner-column elementor-element elementor-element-b9702a6\" data-id=\"b9702a6\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t\t\t<div class=\"elementor-element elementor-element-4df41f5 elementor-widget elementor-widget-heading\" data-id=\"4df41f5\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<style>\/*! elementor - v3.11.1 - 15-02-2023 *\/\n.elementor-heading-title{padding:0;margin:0;line-height:1}.elementor-widget-heading .elementor-heading-title[class*=elementor-size-]>a{color:inherit;font-size:inherit;line-height:inherit}.elementor-widget-heading .elementor-heading-title.elementor-size-small{font-size:15px}.elementor-widget-heading .elementor-heading-title.elementor-size-medium{font-size:19px}.elementor-widget-heading .elementor-heading-title.elementor-size-large{font-size:29px}.elementor-widget-heading .elementor-heading-title.elementor-size-xl{font-size:39px}.elementor-widget-heading .elementor-heading-title.elementor-size-xxl{font-size:59px}<\/style><h2 class=\"elementor-heading-title elementor-size-default\">How Does a Reverse Mortgage Work<\/h2>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-inner-section elementor-element elementor-element-995be2d elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"995be2d\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-50 elementor-inner-column elementor-element elementor-element-2b29e5f\" data-id=\"2b29e5f\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t\t\t<div class=\"elementor-element elementor-element-d49538c elementor-widget elementor-widget-image\" data-id=\"d49538c\" data-element_type=\"widget\" data-widget_type=\"image.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<style>\/*! elementor - v3.11.1 - 15-02-2023 *\/\n.elementor-widget-image{text-align:center}.elementor-widget-image a{display:inline-block}.elementor-widget-image a img[src$=\".svg\"]{width:48px}.elementor-widget-image img{vertical-align:middle;display:inline-block}<\/style>\t\t\t\t\t\t\t\t\t\t\t\t<img decoding=\"async\" src=\"https:\/\/applyreverse.com\/wp-content\/uploads\/elementor\/thumbs\/Black-Lady_01_png-pujln97tt2jz4b5tfuope4n0ajgn4rgg0883baecec.png\" title=\"Black Lady_01_png\" alt=\"Black Lady_01_png\" loading=\"lazy\" \/>\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t<div class=\"elementor-column elementor-col-50 elementor-inner-column elementor-element elementor-element-4719e77\" data-id=\"4719e77\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t\t\t<div class=\"elementor-element elementor-element-090f933 elementor-widget elementor-widget-text-editor\" data-id=\"090f933\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<style>\/*! elementor - v3.11.1 - 15-02-2023 *\/\n.elementor-widget-text-editor.elementor-drop-cap-view-stacked .elementor-drop-cap{background-color:#818a91;color:#fff}.elementor-widget-text-editor.elementor-drop-cap-view-framed .elementor-drop-cap{color:#818a91;border:3px solid;background-color:transparent}.elementor-widget-text-editor:not(.elementor-drop-cap-view-default) .elementor-drop-cap{margin-top:8px}.elementor-widget-text-editor:not(.elementor-drop-cap-view-default) .elementor-drop-cap-letter{width:1em;height:1em}.elementor-widget-text-editor .elementor-drop-cap{float:left;text-align:center;line-height:1;font-size:50px}.elementor-widget-text-editor .elementor-drop-cap-letter{display:inline-block}<\/style>\t\t\t\t<p>Can You Explain Me How does Reverse Mortgage works?<\/p><p>-Karen<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-inner-section elementor-element elementor-element-0474f29 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"0474f29\" data-element_type=\"section\" data-settings=\"{&quot;background_background&quot;:&quot;classic&quot;}\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-inner-column elementor-element elementor-element-44c8da9\" data-id=\"44c8da9\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t\t\t<div class=\"elementor-element elementor-element-f4b19d6 elementor-widget elementor-widget-text-editor\" data-id=\"f4b19d6\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<div class=\"elementor-element elementor-element-19302393 elementor-position-left elementor-vertical-align-middle elementor-view-default elementor-mobile-position-top elementor-widget elementor-widget-icon-box\" data-id=\"19302393\" data-element_type=\"widget\" data-widget_type=\"icon-box.default\">\n<div class=\"elementor-widget-container\">\n<div class=\"elementor-icon-box-wrapper\">\n<div class=\"elementor-icon-box-content\">\n<p>A Home Equity Conversion Mortgage (HECM), commonly known as a&nbsp;<strong>reverse mortgage<\/strong>, enables seniors to access a portion of their home\u2019s equity without having to make monthly mortgage payments.<sup>1&nbsp;<\/sup><\/p>\n<p><b>The loan generally does not become due until the last surviving borrower permanently moves out of the property or passes away.&nbsp; <\/b>At that time, the borrower or their heirs can choose to repay the reverse mortgage loan&nbsp;and keep the home, or sell the home to repay the loan.<sup>&nbsp;&nbsp;&nbsp;<\/sup>Any remaining equity is inherited by the estate. The estate is not personally liable if the home sells for less than the balance of the reverse mortgage. The loan may also be due if the borrower(s) no longer meet the loan obligations.<sup>1<\/sup><\/p>\n<p><a name=\"safe\"><\/a><\/p>\n<h2>Safeguards<\/h2>\n<p>There are several reverse mortgage safeguards in place to protect borrowers.&nbsp; Some of the key protections are listed below:<\/p>\n<ul>\n<li>The HECM is a \u201cnon-recourse\u201d loan. <b>If you sell the home to repay the loan, you or your heirs will never owe more than the loan balance or the value of the property,<\/b> whichever is less; and no assets other than the home must be used to repay the debt.<\/li>\n<li>Completing the mandatory counseling session with an FHA-approved counselor before an application can be processed helps to ensure borrowers have all the information they need.<\/li>\n<li>Lenders are required to complete a financial assessment of borrowers to evaluate their ability to pay taxes and insurance. If the analysis shows that borrowers may have difficulty keeping up with their financial obligations, they may be required to set aside proceeds from the loan to cover these costs.&nbsp; The purpose of this regulation is to ensure borrowers have the ability to fulfill their obligations for a reverse mortgage loan.<\/li>\n<\/ul>\n<p><a name=\"bene\"><\/a><\/p>\n<h2>Benefits of a Reverse Mortgage Loan<\/h2>\n<p>A reverse mortgage loan may help you enjoy financial security and peace of mind, and allow you to remain in your home during your retirement years.<\/p>\n<p>You have the freedom to use the net proceeds however you deem necessary.&nbsp; For example, you can use your proceeds to:<\/p>\n<ul>\n<li><b>Supplement your retirement income<\/b><\/li>\n<li><b>Consolidate debt<\/b><\/li>\n<li><b>Pay for medical care, prescription drugs and in-home care<\/b><\/li>\n<li><b>Cover large or unexpected expenses<\/b><\/li>\n<li><b>Make home improvements<\/b><\/li>\n<li><b>Live a more comfortable lifestyle<\/b><\/li>\n<\/ul>\n<h2>Eligibility Requirements<\/h2>\n<p>Some of the key eligibility requirements for a reverse mortgage loan are:<\/p>\n<ul>\n<li>The youngest borrower on title must be age 62 or older<\/li>\n<li>The home must be your principal residence<\/li>\n<li>You must have sufficient equity in your home<\/li>\n<li>You must meet financial eligibility criteria as established by HUD<\/li>\n<li>You must complete a HUD-approved counseling session<\/li>\n<li>Your home must be a single-family residence, a 2-4 unit owner-occupied home, or a FHA approved condominium or manufactured home that meets FHA requirements.<\/li>\n<\/ul>\n<p class=\"disclaimer\"><sup>1<\/sup>&nbsp;<em>You must live in the home as your primary residence, continue to pay required property taxes, homeowners insurance and maintain the home according to Federal Housing Administration requirements. Failure to meet these requirements can trigger a loan default that may result in foreclosure.<\/em><\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"<p>How Does a Reverse Mortgage Work Can You Explain Me How does Reverse Mortgage works? -Karen A Home Equity Conversion Mortgage (HECM), commonly known as a&nbsp;reverse mortgage, enables seniors to access a portion of their home\u2019s equity without having to make monthly mortgage payments.1&nbsp; The loan generally does not become due until the last surviving &hellip;<\/p>\n<p class=\"read-more\"> <a class=\"\" href=\"https:\/\/applyreverse.com\/?page_id=1671\"> <span class=\"screen-reader-text\">How a Reverse Mortgage Works<\/span> Read More &raquo;<\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"parent":0,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":{"site-sidebar-layout":"no-sidebar","site-content-layout":"page-builder","ast-global-header-display":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"disabled","ast-breadcrumbs-content":"","ast-featured-img":"disabled","footer-sml-layout":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","footnotes":""},"class_list":["post-1671","page","type-page","status-publish","hentry"],"_links":{"self":[{"href":"https:\/\/applyreverse.com\/index.php?rest_route=\/wp\/v2\/pages\/1671","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/applyreverse.com\/index.php?rest_route=\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/applyreverse.com\/index.php?rest_route=\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/applyreverse.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/applyreverse.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=1671"}],"version-history":[{"count":19,"href":"https:\/\/applyreverse.com\/index.php?rest_route=\/wp\/v2\/pages\/1671\/revisions"}],"predecessor-version":[{"id":2301,"href":"https:\/\/applyreverse.com\/index.php?rest_route=\/wp\/v2\/pages\/1671\/revisions\/2301"}],"wp:attachment":[{"href":"https:\/\/applyreverse.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=1671"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}