Frequently Asked Questions
Q.What is a reverse mortgage?
A reverse mortgage allows a homeowner to turn the equity in their
home into a monthly income or lump-sum cash, BOTH TAX FREE. NO
PAYMENT is required for as long as you live and maintain the home
as your primary residence.
Q.How do I qualify?
The applicant(s) must be 62 years of age or above and own a home.
There are NO credit, NO income and NO health requirements.
Q.How much money can I receive?
The amount available is based on several factors: your age, home
value, current interest rates and the specific plan you choose.
Generally speaking, the higher the age, the higher the value of
the home, the more money is available.
Q.Who really owns my home?
You do. A reverse mortgage is just a lien similar to a traditional
mortgage. You can sell you home at any time.
Q.Is there more than one reverse mortgage?
Yes, there are six. The majority of reverse mortgages issued are
the FHA (Federal Housing Administration) “Home Equity Conversion
Mortgage” (HECM). They are federally insured and come in
two options, the monthly adjustable option or the annually adjustable
option. “FannieMae” (FNMA) offers the “Home
Keeper” reverse mortgage and there are also three proprietary
reverse mortgages for higher valued homes. .
Q.Do I have to pay income tax on the proceeds?
Proceeds received from a reverse mortgage are loan advances and
not taxable income. For your specific situation, we recommend
that you consult your tax advisor.
Q.How safe are FHA insured reverse mortgages?
They are VERY SAFE. You or your heirs retain ALL ownership rights.
It is impossible to fall behind on payments because there are
none to make. And reverse mortgages are “non-recourse”
mortgages so a debt CANNOT be passed to your heirs as a result
of doing an FHA insured reverse mortgage.
Q.Can a person ever lose their home?
NEVER. As long as the home remains the borrower’s primary
residence and you keep the home insured and your property taxes
current.
Q.Who gets my home after my death?
Your estate does. Your heirs have the CHOICE of keeping or selling
the house. If they decide to sell the home, the proceeds of the
sale would be used to repay the mortgage, with the remainder going
to your heirs.
Q.Will this income affect my Social Security or Medicare benefits?
NO. Money from a reverse mortgage is not considered income, nor
does it affect Social Security or Medicare. Homeowners on SSI
or Medicaid should observe pertinent rules.
Q.How can I take a look at my specific situation?
You can evaluate the different reverse mortgages with a no-cost,
no-obligation computerized comparison of the available plans.
Call Toll Free (888) 415-1955
Q.Please tell me about Griffin Financial Mortgage, LLC.
Our goal at Griffin Financial Mortgage, LLC is to provide service
and knowledge above our customers’ expectations. We are
an Equal Housing Lender licensed by HUD and doing business in
20 states. Our company, is headquartered in Fort Worth, Texas.
