Essential Documentation for US Government-Insured Reverse Mortgages (HECM)
Identification Documents: To establish your identity, you will need to provide valid identification documents, such as:
Driver's license or state-issued identification card
Passport or permanent resident card
Social Security card
Proof of Age and Homeownership: To verify your eligibility for a reverse mortgage, you will need to provide:
Birth certificate or other official document indicating your age
Mortgage statement or property deed showing your ownership of the home
Financial and Income Verification: To assess your financial situation and determine your eligibility, you will need to provide:
Bank statements showing your savings and checking account balances
Documentation of other assets, such as investments or retirement accounts
Proof of income, such as Social Security statements, pension statements, or tax returns
Reverse Mortgage Counseling Certificate: Completion of a reverse mortgage counseling session with a HUD-approved counselor is a mandatory step. You will need to provide the certificate of completion obtained after counseling.
Home Appraisal Report: As part of the process, an appraisal of your home will be conducted to determine its current market value. The lender will arrange this appraisal, and you will need to provide access to the property.
Homeowners Insurance and Property Tax Information: You will need to provide documentation related to your homeowners insurance policy, including the policy declaration page. Additionally, you will need to provide information regarding property taxes, including any outstanding payments or exemptions.
Conclusion: To successfully apply for a US Government-insured reverse mortgage (HECM), you will need to gather and provide specific documentation. These include identification documents, proof of age and homeownership, financial and income verification, a reverse mortgage counseling certificate, a home appraisal report, and documentation related to homeowners insurance and property taxes. As your trusted lender, we are here to guide you through the process and help you gather the necessary documentation. Please feel free to reach out to our team for any assistance or clarification you may need.
NMLS | 240870
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Reverse mortgages have become a popular financial tool for homeowners ages 62 and older who are seeking a consumer loan. A reverse mortgage loan allows senior homeowners to access the equity they’ve built up in their home over the years. Unlike traditional “forward” mortgages, reverse mortgages do not require monthly mortgage payments. Homeowners will still be responsible for insurance, property taxes, and maintenance; however, loan repayment is deferred until the homeowner no longer lives in the home. Since monthly mortgage payments are not required, seniors typically use their reverse mortgage funds as income tax-free cash. Homeowners who want to qualify for a reverse mortgage must be at least 62 years old and have equity available in their home. Reverse mortgages work by allowing homeowners to convert a portion of their homes equity into cash, based on the total equity available in the home. Loan proceeds can be received in the form of a line of credit, monthly payments, a lump sum, or any combination of these options. Several factors affect the loan amount which you may qualify for including your home’s value, your age, and certain property requirements set by the Federal Housing Administration (FHA).
Options Pro Marketing and its associated brands (Fire Your Landlord®) are marketing entities that partner with lenders and are not lenders themselves. All lending questions should be directed to our partner lenders ( Christopher Trapani of EZ Fundings). A pre-approval does not constitute a loan commitment or guarantee of a loan. Pre-approval is subject to a satisfactory appraisal, satisfactory title search, and no meaningful change to borrower's financial condition.
This is not an offer for extension of credit or commitment to lend. All loans must satisfy company underwriting guidelines. Not all applicants qualify. Information and pricing are subject to change at any time and without notice. The content in this advertisement is for informational purposes only. Products not available in all areas. As prohibited by federal law, we do not engage in business practices that discriminate on the basis of race, color, religion, national origin, sex, marital status, age (provided you have the capacity to enter into a binding contract), because all or part of your income may be derived from any public assistance program, or because you have, in good faith, exercised any right under the Consumer Credit Protection Act. The federal agency that administers our compliance with these federal laws is the Federal Trade Commission, Equal Credit Opportunity, Washington, DC, 20580. EZ Fundings is an Equal Housing Lender.
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