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 the equity you have in your home into cash, providing you with financial flexibility and security in your golden years.

What is a Reverse Mortgage?

A reverse mortgage is a loan that allows you to access the equity that you’ve built up in your home by no longer 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.

The most common reverse mortgage is known as a home equity conversion mortgage (or HECM). These loans are insured by the Federal Housing Administration (FHA), and proceeds from them are tax-free and do not affect Social Security, Medicare or pension benefits. With a HECM, you will never owe more than the value of your home.

How to Qualify for a Reverse Mortgage

At Compass Mortgage, we understand that every homeowner’s situation is unique. If you’re considering a reverse mortgage, we will guide you through the process from start to finish.

First Steps toward Obtaining Your Reverse Mortgage

• At the outset, we’ll take the time to understand your financial goals and answer any questions you may have about reverse mortgages.
• Our reverse mortgage specialists will help you determine if you meet the requirements for a reverse mortgage and explain the options available.
• We’ll give clear information about the costs, benefits and responsibilities associated with a reverse mortgage, ensuring you make an informed decision.
• 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.

Reverse Mortgage Requirements

• At least one borrower must be 62 years of age 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 counselling 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.