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.