Advantages and Frequently Asked Questions

1) What is a FHA Reverse Equity Mortgage (REM)?

FACT: A FHA reverse mortgage is a mortgage loan, insured by the Federal Housing Administration an Agency of the Federal Government. It allows a senior homeowner (Age 62 or older) to convert a portion of the equity in their home into Tax-Free cash to be used as needed by the senior.

 2) Why a FHA Reverse Equity Mortgage (REM)? 

 FACT: In times of uncertainty, the Reverse Mortgage provides a solution. With current Inflation, Many seniors, living on Social Security income, and possibly a small pension or savings, are experiencing difficulty in meeting the ever increasing cost of living. Being able to take cash out of the equity in their home, without requiring monthly principal & interest mortgage payments, has solved many seniors’ financial problems. It did to me.

3) Am I elegible for a Reverse Mortgage? 

FACT: For the FHA Insured HECM Reverse Mortgage, You are elegible if one of the owners on Title is 62 years of age or older. There are Proprietary Reverse Mortgages which accept all Borrowers 55 and older.

Any owner on Title younger than 62, will not be on the Loan. However, per new HUD rules, the Non-Borrowing Spouse is protected under the Mortgage . You can start the process by applying 2 months prior to your qualifying birthday.
My Home: it can be single family, duplex-triplex-fourplex (one unit as primary residence), townhouses and FHA approved condos or qualifying Manufactured Homes.  

 4) What other qualifications must I meet?

FACT: Easy Credit and Income iqualification. Call me today.

5) How much money can I get?

FACT: The older you are the more proceeds you can get. Proceeds are based on the age of the youngest Borrower on Title, the value of the home and current interest rate. Any value home qualifies. You may determine how much you can get by clicking here How Much Can I Get?, or submit the form provided at the bottom of this page or call me at 786-262-6486 for a more complete estimate and information without cost or obligation. 

6) Are there any monthly payments I will have to make?

FACT:  Borrower makes NO Mortgage payments as long as a Borrower lives the home as Primary Residence, pays property taxes, insurance, any property charges and maintains it in good condition.

  If you have a mortgage, you pay-off your present mortgage and you eliminate monthly payments.  That is money in your pocket!!!

7) Why is a Reverse Mortgage (REM) better than a regular Mortgage or a Home Equity Line of Credit?

 FACT: A REM is far superior to a regular mortgage or Home Equity Line of Credit  (HELOC) for Seniors. Our CreditLine grows!
Banks are cancelling or decreasing regular HELOC (line of credit) on most homes. A Reverse Mortgage CreditLine can NOT be cancelled or decreased. 

In this stage of your life, you don’t deserve the recurring torture of having to make monthly P&I payments!

8) Will the Bank own my home?

FACT: NO. Period. Ownership of the home is 100% yours. Neither the Bank nor the Government take your home.

 You do NOT loose the home as long as you comply with terms and conditions if the mortgage and/or note. 

• The bank nor the Government does NOT want your home. 
• You are NOT selling the home to the bank or to the Government.
• You can sell or refinance it anytime without penalty.
• You can NOT outlive the loan agreement.
• You must pay Taxes and Insurance and any property charges or Condo/Homeowners fees.
• You or your heirs pay-off the loan and the total remaining balance of the equity belongs to you or to your heirs.
  
  

9) Can I refinance or sell my home at anytime?

FACT: Yes, you can refinance with a regular mortgage or even with another REM as the value of your home and your age increase.  You can sell at any time. There is no pre-payment penalty.

10) What am I responsible for?

 FACT: You are responsible for ongoing maintenance of the home, pay taxes, Insurance & Condo/Homeowners fees.

11) When do I have to pay-off the REM?

FACT: You or your heirs will pay off the loan:

• when the property is refinanced, sold, or 
• up to 12 months after the last borrower on Title passes away, or
• 12 months after the last borrower moves out permanently due to health.

Read "What Happens After The Last Borrower Passes"   http://HappySeniorHomeOwners.com/After 

12) What happens to my home's equity when I sell? FACT: When you or your heirs sell the property, the mortgage is paid and the total remaining equity goes to you or your heirs

13) How am I Protected? FACT: Built-In Protection:

• You complete a short telephone or face-to-face HUD approved independent Counseling  before processing may begin. The Counselor will explain the program and see that you understand if this program suits your needs. You receive a non binding, Certificate from HUD for the FHA Program. This has a duration of six months and there is no obligation to continue.
• The loans are Non-Recourse loans and the bank can not collect from you or from your heirs any amount over the balance of the loan or the value of the home whichever is less. Call us at 786-262-6486 to get you started.

14) Should I tell my children or Advisors what I am considering doing? 

FACT: Absolutely yes! I recommend that your children or advisors take part in your review of the Program and see how it can improve your financial security, needs and desires in the future. If possible, we suggest we all meet in your home, in our office or through a conference call.

 For more details send the Form provided at the bottom of the page, call me  at 786-262-6486 or email RodKohly@Gmail.com   or write me to the address below.

FACT: Born in 1940, Juan Luis has been a Licensed Mortgage Broker and Loan Officer specializing in Reverse Mortgages since 2005. As a senior and having a Reverse Mortgage on his home, he understands the needs and situation of many seniors face today. Unlike many offering Reverse Mortgages, he has a Reverse Mortgage on his own home and sincerely believes that, for many, a Reverse Mortgage is a safe and trustworthy solution. Many times, it can be a blessing.

16) Will a Reverse Mortgage (REM) affect my Social Security or Medicare Benefits**:

FACT: Social Security or Medicare: Proceeds from a REM Loan are not considered income. It would not affect benefits**. 

17) Will a REM affect my Suplemental Security Income Benefits**: 

Proceeds from a REM Loan are not considered income. If the funds are retained into the following month, they could be evaluated as an asset if it exceeds the amount allowed** Consult your SSI Representative.

18) Will a REM affect my Medicaid Benefits**:

FACT: Proceeds from a REM Loan are not considered income. If the funds are retained into the following month, they could be evaluated as an asset if it exceeds the amount allowed. See Rule #1840.1010. Call Your Medicaid, Social Security or Dept of Children & Families Representative. Call me at 786-262-6486 or email me at RodKohly@gmail.com to get copy of the Rule**.

** Subject to terms and /or conditions in mortgage and/or note. Subject to errors and/or omissions and to change without prior notice. We do not provide specific recommendations on tax, estate, financial or legal matters. Consult with your tax, financial or legal counsel. Provide us with their telephone so that we can provide the information they will require.

**Medicaid and/or SSI Beneficiaries: Consult your Medicaid, Dept. of Children & Families and/or Social Security Representative. Consult with your tax , financial or legal counsel.

Not Only Am I A Reverse Mortgage Specialist, But I Am Also a Client!!!