Reverse Mortgage by SEA

Reverse Mortgage FAQ

Q&A with Senior Equity Access Group

What is a reverse mortgage?

A reverse mortgage is a mortgage that was created by the federal government for seniors ages 62 and over to allow them to tap into the equity in their home.


How could a reverse mortgage help my parents?

A reverse mortgage could help your parents in a number of ways:
If they’re on a fixed income and are looking to supplement that somehow, a reverse mortgage would be a good means to get that extra income.
If they’re just looking to travel and enjoy their golden years, a reverse mortgage would be a good means for them to get some extra money.
Or if they have anything else that they want to do, buy a new car, just to have extra money to put aside to pay for emergencies, to pay for healthcare, there is a number of uses for a reverse mortgage.


How do you apply for a reverse mortgage?

It’s very easy, there are no income requirements. You can just give general information, date of birth, your name, your address. We typically like to see mortgage balances of less than 50% of the equity in your home. That would help you qualify. You have to have a balance of little or no balance, something that would be able to be paid off with the proceeds of a reverse. Typically there are no approvals or denials.


How does a reverse mortgage affect my taxes?

All reverse proceeds are tax free because they’re considered borrowed money.


Would I ever lose my home with a reverse mortgage?

No. We have it set up basically you pay a 2% premium for insurance, where the federal government is insuring that home for you, the borrower. The promise is that you will never owe more than your home is worth. You will retain the title and when the loan becomes due and payable, you will never owe more than the home is worth.


Are there any restrictions on a reverse mortgage?

You must be 62 or older to qualify. Depending on the property type, there is a lending limit for different counties in CA and across the country.

Tell me more about the property types.

The property types include single family residences, condos, also some manufactured homes and some mobile homes, subject to approval under certain guidelines.


Where can those guidelines be found?

They can be found on the HUD website under reverse mortgages. It will go into greater detail with regard to what properties will be approved or not approved.


Do you have those guides available?

They are available on our website, www.srequityaccess.com 


Can I give reverse mortgage proceeds to travel?

You certainly can, you can use the proceeds for anything you want.


Would I be able to help pay for my grandchild’s college tuition out of a reverse mortgage?

Absolutely.


Are those types of things like the college education, or the travel available as a tax credit?

No, because you’re using the tax free proceeds to make the purchase.


Where can I apply for a reverse mortgage?

You can contact us at Senior Equity Access Group, by going to our website, at www.srequityaccess.com, or you can call us toll free at 800-633-4148.


Are there any risks involved with a reverse mortgage that I should be aware of?

I like to advise people to contact their financial adviser and tax adviser to help them with any types of plans or annuities they’re planning to purchase. It’s wise to contact your financial adviser before making any decisions financially. Reverse mortgages are a great means for a lot of people to pay for healthcare, children’s education, things like that, but they’re not for everyone. I like to tell people to make sure they’ve researched all of their options.


Is there anything else you’d like me to know about reverse mortgages and the Senior Equity Access Group?

Senior Equity Access Group specializes in helping senior citizens gain access to the equity in their homes. We have a professional and friendly staff, fast friendly service, and we’ll answer any questions you have as we guide you through the process in a professional manner.


Are you affiliated with any other mortgage company?

We are a correspondent of Financial Freedom.


Is Sr. Equity access group working with any other mortgage company?

We are the sister company of Morfacts Mortgage Company of San Diego, and we’ve been in business for 18 years.
 

Answers by SEA Reverse Mortgage

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