Reverse Mortgages

Are you a homeowner, 62 or older, looking for a way to access the equity in your home without selling it? A reverse mortgage may be the perfect solution for you. This type of loan allows you to convert some of your home’s equity into cash, providing you with financial flexibility and security in your golden years.

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What is a Reverse Mortgage?

A reverse mortgage is a loan that allows you to access the equity that you built in your home without having to make mortgage payments every month. 

The loan is repaid when the borrower passes away, moves out permanently or sells the home. This unique feature makes reverse mortgages an attractive option for homeowners who want to supplement their income, pay off debt or fund home improvements in their retirement years.

 

How to Get a Reverse Mortgage

At Compass Mortgage, we understand that every homeowner’s situation is unique. 

If you’re considering a reverse mortgage, here’s how our team will guide you through the process:

  • Personalized consultation: We’ll take the time to understand your financial goals and answer any questions you may have about reverse mortgages.
  • Eligibility assessment: Our experts will help you determine if you meet the requirements for a reverse mortgage and explain the options available.
  • Transparent guidance: We’ll give clear information about the costs, benefits and responsibilities associated with a reverse mortgage, ensuring you make an informed decision.
  • Access your equity: Upon closing, you’ll have the freedom to access your home’s equity in the form of a lump sum, monthly payments or a line of credit, depending on your preferences and needs.

     

Choose Compass Mortgage for your Reverse Mortgage

When you choose Compass Mortgage, you’re not just choosing a lender—you’re gaining a reliable advocate and a personalized loan process.

  • Unrivaled expertise: Our team of seasoned professionals brings years of industry experience and understanding of reverse mortgages to guide you through the loan process and provide valuable insights along the way.
  • Personalized service: Our client-centric approach means you’ll receive personalized advice and loan options tailored to your needs.
  • Transparency and trust: Our relationships are built on the foundation of transparency. We provide clear, comprehensive information about your options so you can decide confidently.

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Reverse Mortgage Requirements
  • At least one borrower must be 62 years old or older
  • The home must be your primary residence
  • You must have sufficient equity in your home (generally 50% or more)
  • The property you live in should either be a single-family dwelling, a multi-unit building with up to four units or a sanctioned condominium or prefab home
  • You must attend a mandatory counseling session with a HUD-approved counselor to ensure you fully understand the terms and conditions of a reverse mortgage
  • You must demonstrate the ability to pay ongoing property taxes, insurance and home maintenance costs
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Reverse Mortgage FAQs

  • Borrowers can remain in their homes as they age
  • Borrowers can use the funds for any purpose of their choosing
  • Payout options are flexible, including a lump sum, monthly payments or a line of credit
  • Cash (from the loan) is typically not subject to income tax
  • Heirs have options for repaying the loan and retaining the property
  • Heirs are not responsible for any shortfall if the loan balance exceeds the home’s value at the time of sale. Protections for heirs are one of the many reasons homeowners choose a HECM.

The lender determines a borrower’s loan amount based on factors such as age, the home’s appraised value, current interest rates and the chosen payment plan.

Homeowners retain ownership of the home during a reverse mortgage as long as obligations are met such as: 

  • Paying property taxes
  • Maintaining the property
  • Carrying homeowners insurance 
  1. When the last borrower passes away
  2. Homeowner(s) decide to sell the home
  3. The home is no longer used as their primary residence

Heirs have the following options after the homeowner passes away:

  • Pay off the loan balance and keep the home
  • Sell the home and pay off the mortgage with the profits
  • Transfer the deed to the lender (known as a deed in place of foreclosure)
  • Refinance the reverse mortgage with a new loan
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