Reverse mortgages enable homeowners who are age 62 or over to tap into their equity without selling their home and without making monthly payments. If you are not age 62 or over, you do not qualify. Click here to learn more about qualifying.
You can receive cash now, receive monthly payments for life, receive monthly payments for a specific amount of time, set up an equity line or a combination of any or these options AND you do not have to make payments! Never pay this money back as long as you live in the home!
Reverse mortgages are ideal for Utah homeowners who are retired or no longer working and need to supplement their income. I have seen others take the funds and invest it or use for other needed items. The funds can be used any way you would like.
Following are the 7 steps to obatining a reverse mortgage.
STEP 1. Research Contact Ron Pippin at Bank of Utah for more information about reverse mortgages and specific loan programs. I also recommend that you research other organizations to get as much information as possible as well consulting with your financial advisor and family members. Organizations that I recommend are:
AARP – www.aarp.org. This organization needs no introduction to the seniors of America.
National Center for Home Equity Conversion (NEHC) – www.reverse.org. This site provides a comprehensive look at reverse mortgages.
STEP 2. Your Application Once you are ready to apply for a reverse mortgage, you will provide necessary information needed to apply for your reverse mortgage. An analysis will be provided showing different reverse mortgage options as well as give you a review of all of the costs involved. Remember that credit and income is not a criteria for a reverse mortgage. The only exception is if you are CURRENTLY in a chapter 7 bankruptcy filing. (Past bankruptcy does not matter)
STEP 3. Counseling You must receive counseling from a HUD-approved agency, which is done either by phone or in person. I have a list of counselors from which you can choose. Counseling is required to make sure that you are not being taken advantage of. Unfortunately, there have been some unscrupulous lenders who sell seniors additional services that are unnecessary and so the federal government wants to ensure you are protected. Once counseling is completed, a certificate of completion will be issued to you.
STEP 4. Meet with Ron Pippin Once I have your Counseling Certificate and application, my assistant and I will handle everything, such as ordering an appraisal, pest inspection (if needed) and title work. Once you have chosen a loan program, you also will want to determine the loan structure – a lump sum, monthly payments, credit line, or a combination. My assitant will then submit your application to underwriting for approval. Call or email me and we an get you started!
STEP 5. Closing You will work with me and my assistant to schedule a convenient time for your closing. We will prepare all of the necessary paperwork for you. Once closed, a 3 day wait is required after which your loan will fund and your money will be available to you.
STEP 6. Payment After the three days your loan funds. You will receive your payment (lump sum, monthly payment, or access to credit line – whichever option is chosen).
specific loan programs. I also recommend that you research other organizations to get as much information as possible as well consulting with your financial advisor and family members. Organizations that I recommend are: 