Fellowship Home Loans Reverse Mortgages

While reverse mortgages are not a one-size-fits-all option, they do provide a valuable option for many people. The most commonly-used type is the Home Equity Conversion mortgage, or HECM. The program is funded through the FHA and is available only through lenders affiliated with FHA. Reverse mortgages are designed to allow older homeowners to tap the equity they’ve built up without having to sell their homes. Since there are several requirements for reverse mortgages, it pays to carefully examine them prior to making any decisions.

Advantages of a Fellowship Home Loans Reverse Mortgage

It’s important to know the advantages reverse mortgages provide homeowners as they reach a time in their lives where they may need an additional type of funding to enjoy themselves. The advantages include:

  • Individuals 62 years old and older are eligible
  • No monthly payments are required
  • The program provides tax-free monthly income (consult your tax advisor)
  • A reverse mortgage allows you to remain in your home
  • The title for the property remains in your name
  • You can now use the proceeds from a reverse mortgage to purchase a new home.

Since every homeowner’s situation is different, it’s important to explore and discuss all the program’s options prior to moving forward.