Learn About Our NJ Mortgage Company Reverse Mortgages
For Reverse Mortgages You Can Feel Good About.
Reverse mortgages are popular for a reason. During the golden years you should be able to put your feet up and enjoy all that you’ve worked so hard to accomplish over the years. Many older home owners, however, are in a place they never thought they would be— reassessing their financial future.
If you’re a senior, 62 or older, having difficulty keeping up with bills or healthcare expenses, there is a way out of your dilemma. A reverse mortgage allows you to draw on the equity in your home without having to sell it so you can retire more comfortably. Instead of making monthly payments— you’ll receive a payment each month.
Created by the U.S. Department of Housing and Urban Development (HUD), this federally insured private loan is essentially the opposite, or "reverse" of a conventional mortgage where you would submit monthly payments. Instead, a reverse mortgage is a loan that pays you each month. A Reverse Mortgage loan is repaid only when you either sell your home or no longer live there as your principle residence. You retain ownership and title to your home. It's yours just as it was before, but now you can benefit from the equity that's been building in it for years.
When Considering A Reverse Mortgage, Trust is Paramount
When obtaining a reverse mortgage, it’s important to go with a trusted leader to ensure that every ‘t’ is crossed and every ‘i’ is dotted. With a history dating back to 1938, Jersey Mortgage Company has served NY, NJ, PA, FL and CT communities, helping thousands of people reach their retirement dreams.
The reverse mortgage specialists at Jersey Mortgage Company in NJ can help you tap into the equity that has accumulated in your home so you can use the funds. The proceeds can be used for any purpose and are available in a variety of payment methods including cash, a monthly payment, or an Equity Line. A Jersey Mortgage Company Reverse Mortgage loan gives you the peace of mind of a government guaranteed FHA backed loan where you will never owe more than your home is worth.
When you choose our mortgage company in NJ, you can feel secure knowing you are going with a trusted leader. We are one of only three lenders in New Jersey that has received a Lender Certificate of Appreciation from the State of New Jersey Dept. of Housing and Mortgage Finance. We are also members of the LendRIGHT program, a distinction that underscores a deep commitment to providing premium service. No matter how complex or challenging your circumstances may be, the New Jersey, Connecticut, Pennsylvania, Florida and New York reverse mortgage specialists at Jersey Mortgage Company will work with you to develop a program for your long-term future.
Reverse Mortgage features
- No monthly payment. Instead, you are paid each month
- No income or credit qualifying needed
- You maintain title and ownership of your home
- Proceeds from a Reverse mortgage are not subject to personal income taxation
- It is not a government grant, but a loan that is repaid in the future
- Can be used only for the borrower's primary or principle residence
*As of August 5th, 2014 - A spouse that is not 62 years old yet can be included in the reverse mortgage.
5 Steps of a Reverse Mortgage
Counseling is mandatory under all Reverse Mortgage products and programs offered. Counseling is completed by an unbiased 3rd party HUD approved agency.
Once your counseling has been completed consult with your Reverse Mortgage Specialist about setting up a time to go over your loan application and disclosures in detail.
Your loan will be reviewed and closely looked at to ensure your property is in decent condition and that there are no outstanding items that would pose a risk to the lender. Once all items have been received by Underwriting your loan will move to the next and final phase.
Your loan will then enter the processing stage, this is where your appraisal will be ordered, title, and any other pertinent information to prepare your loan for Underwriting.
- Closing & Disbursement
A signing date, time and place will be scheduled with you for finalization of all documents and payment plans that have been selected. In the event that you should want to cancel the loan after signing the documents, you have the right to cancel within three days. After the three days have expired your funds are disbursed as a lump sum or set up for monthly payments depending on which payment option you choose.
Common Reverse Mortgage questions
When weighing the reverse mortgage pros and cons, it’s important to ask questions in order to fully understand the implications. Below are some of the common questions we are frequently asked.
- Simply put, what is a reverse mortgage?
A reverse mortgage is a unique type of home loan that lets you convert a portion of the equity in your home into cash. Unlike a traditional home equity loan or second mortgage, no repayment is required until you can no longer use the home as your principal residence.
- Who’s eligible for a reverse mortgage?
To be eligible, borrowers must be at least 62 years old and live in their home as a primary residence. They must also own their home in full, or be able to pay the balance on their home with the proceeds of the reverse mortgage.
- How do I know if my house qualifies for a reverse mortgage?
As long as you have a 1 to 4-family home, or a townhouse that you live in, your home qualifies for a reverse mortgage loan. A condominium may qualify, but must be evaluated and approved by the FHA.
- How does ownership work?
You will not have to repay the loan for the entire time that you live in the home. You retain complete ownership of your home. After you’re gone, your heirs can refinance the loan into a traditional mortgage, sell the home and pocket the proceeds, or simply walk away from the home altogether.
- Can’t I go ‘upside down’ on my mortgage?
Reverse mortgages are non-recourse loans, which means that you will never owe more than the house is worth. The only factors that determine your maximum borrowing amount are age, home value and the loan amount.
- What other requirements must I comply with?
To ensure due diligence on your part, you must consult with a HUD approved counseling agency before applying for the loan to ensure that you are aware of the terms of the loan. To find HUD approved resources in your area, you can contact the Housing Counseling Clearinghouse at 1-800-569-4287
- What is the amount of time it takes to to close?
The approximate time to close is about 4 weeks