If you are 62+ years old and own a home you may qualify for a Reverse Mortgage that...

• is Federally Insured (FHA)

• eliminates your current mortgage payment

• provides Tax-Free proceeds

• supplies you a guaranteed income for life

• requires No Monthly Payments

• allows unrestricted use of proceeds

• shields your home and assets from creditors

• does NOT affect Social Security or Medicare benefits

• is a 'Non Recourse' loan

Let's look beyond the basic box and discover how a Reverse Mortgage can spark a second home purchase!

The flexibility of reverse mortgages has come a long way since the instrument was first established in 1989. Once perceived only as a last-ditch effort to keep the family home, reverse mortgages are now used to purchase cars, make needed home repairs and improvements, finance education, pay for in-home care, provide supplemental income, and buy second homes.

Here’s how the reverse mortgage, which must be attached to a primary residence, can also be used to acquire a 2^nd home.

Scenarios based upon the lowest combined age of 72 yrs. old for a couple and using the Home Equity Conversion Mortgage (HECM).

Scenario 1

• Borrowers own primary home valued at $235,000. No mortgage exists on the home.

• Borrowers net a reverse mortgage lump sum of $138,000.

• Borrowers purchase a 2^nd home with $138,000 and if mortgage needed to cover balance of 2^nd home purchase, either secures a mortgage for difference or provide own funds to make up the difference.

  • NO mortgage payments are made thereafter on the $138,000 reverse mortgage made on the primary home!

• Taxes and insurance payments must be paid on the primary home and the second home. Additionally, if a mortgage is taken out to make up second home purchase difference, this must also be paid.

Scenario 2

• Borrowers own primary home valued at $235,000. A mortgage of $40,000 exists on the home.

• Borrowers get a reverse mortgage lump sum of $138,000, pay off the $40,000 existing mortgage and receive a net sum of $98,000 to apply towards a second home purchase.

• Borrowers purchase a 2^nd home with $98,000. There is NO MORTGAGE PAYMENT on both the $40,000 used to pay off their primary residence and the $98,000 used towards the 2^nd home purchase! If a mortgage is needed to cover balance of 2^nd home purchase, either secures a mortgage for difference or provides own funds to make up the difference.

  • NO mortgage payments are made thereafter on the $138,000 reverse mortgage made on the primary home!

• Taxes and insurance payments must be paid on the primary home and the second home. Additionally, if a mortgage is taken out to make up second home purchase difference, this must also be paid.

Contact:  Pam Marron, 24 Yrs. Sr. Loan Officer

 Homexpress Lending, Inc.

email: pmarron@tampabay.rr.com

 727-375-8986 office       727-534-3445 cell

750 94^th Ave. N., Ste. 212; St. Petersburg, Fl. 33702

Licensed Correspondent Lender