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Frequently Asked Questions

The Legacy team has put together some of the most frequently asked questions so you can better understand the process. Of course, if you have any additional questions you can always call and ask!

What is the minimum age?

The minimum age is 62 years old. For a married couple, at least one homeowner must be 62 years of age.

Can you buy a home with the reverse mortgage program?

Yes, the reverse mortgage purchase program became available in 2009. This option is usually used for homeowners who are downsizing or relocating. A great option to buy a home for less down, instead of paying cash, keeping more cash in the bank and not have a mortgage payment.

When is a reverse mortgage paid back?

The reverse mortgage loan is paid back when all reverse mortgage borrowers have left the home that secures the reverse mortgage. Heirs may sell the home, pay off the reverse mortgage and receive the remaining equity in the home.

What entity manages and insures most reverse mortgages?

HUD/FHA insures most reverse mortgages and manages the program. Other reverse mortgage programs, proprietary reverse mortgages are available in some states.

Is there special training for reverse mortgage loan officers?

The National Reverse Mortgage Lenders Association, NRMLA has a special designation CRMP, Certified Reverse Mortgage Professional. This program has continuing education requirements. A CRMP has demonstrated superior knowledge and competency with the reverse mortgage program. In addition, a CRMP has agreed to uphold the highest ethical and professional standards in the reverse mortgage industry.

Do I have choices on how I receive my funds?

Yes, The reverse mortgage can access equity in your home by setting up a monthly lifetime payment, a credit line for future use or cash out or a combination of all three depending on the homeowners needs.

Is there a monthly mortgage payment?

No, the reverse mortgage is paid back by selling the home when the last homeowner passes away.

What homeowner responsibilities will continue after you have set up a reverse mortgage?

The homeowner must continue to pay homeowners insurance, property taxes, HOA fees and other fees assigned to the property. In addition, a yearly occupancy questionnaire is filled out and returned to loan servicer.

Guild Mortgage Company; Equal Housing Opportunity; AZ BK #0018883; Licensed by the Department of Financial Protection and Innovation under the California Residential Mortgage Lending Act; MA Mortgage Lender License #MC3274; MA Mortgage Broker License #MC3274; Licensed by the Mississippi Department of Banking and Consumer Finance; Licensed by the N.J. Department of Banking and Insurance; NV Mortgage Company #1141; OR ML-176; Rhode Island Licensed Lender; Rhode Island Licensed Third-Party Loan Servicer; Company NMLS ID 3274. www.nmlsconsumeraccess.org/.

All loans subject to underwriter approval. Terms and conditions apply, subject to change without notice. Guild Mortgage Company is an Equal Opportunity Employer. Guild Mortgage Company 5887 Copley Drive, Floors 1, 3, 4, 5, 6, San Diego, CA 92111; For more licensing information, please visit www.guildmortgage.com/licensing.

*These are brokered loan products. The above material is not from HUD or FHA and was not approved by HUD or a government agency. Consult your tax professional to determine the tax effects of a reverse mortgage loan. Reverse mortgage borrowers must maintain the property and keep current on all property taxes, homeowner’s insurance and HOA dues.

Attn: TEXAS APPLICANTS

“CONSUMERS WISHING TO FILE A COMPLAINT AGAINST A MORTGAGE BANKER OR A LICENSED MORTGAGE BANKER RESIDENTIAL MORTGAGE LOAN ORIGINATOR SHOULD COMPLETE AND SEND A COMPLAINT FORM TO THE TEXAS DEPARTMENT OF SAVINGS AND MORTGAGE LENDING (DOWNLOAD FORM HERE), 2601 NORTH LAMAR, SUITE 201, AUSTIN, TEXAS 78705. COMPLAINT FORMS AND INSTRUCTIONS MAY BE OBTAINED FROM THE DEPARTMENT’S WEBSITE AT WWW.SML.TEXAS.GOV. A TOLL-FREE CONSUMER HOTLINE IS AVAILABLE AT 1-877-276-5550. THE DEPARTMENT MAINTAINS A RECOVERY FUND TO MAKE PAYMENTS OF CERTAIN ACTUAL OUT OF POCKET DAMAGES SUSTAINED BY BORROWERS CAUSED BY ACTS OF LICENSED RESIDENTIAL MORTGAGE LOAN ORIGINATORS. A WRITTEN APPLICATION FOR REIMBURSEMENT FROM THE RECOVERY FUND MUST BE FILED WITH AND INVESTIGATED BY THE DEPARTMENT PRIOR TO THE PAYMENT OF A CLAIM. FOR MORE INFORMATION ABOUT THE RECOVERY FUND, PLEASE CONSULT THE DEPARTMENT’S WEBSITE AT WWW.SML.TEXAS.GOV.”