VIP Mortgage Corporation: About US!

A reverse mortgage is a complex home loan for senior homeowners who have built up substantial equity in their property. In a reverse mortgage the lender loans you money based on the value of your home, the amount of equity you have in the home, and your age at the time of the loan application. The lender pays you the money either in a lump sum, in monthly installments, or as a line-of-credit. Unlike a traditional home equity loan or second mortgage, repayment is not required until you sell your home, move out permanently, or die. The amount of money you owe increases over time because you do not make payments. If you sell your home, you can keep any proceeds from the sale of your home in excess of what you owe the lender.

To qualify for a reverse mortgage, you must be at least 62 years old. The mortgage on your home must be completely or nearly paid off. You can get a reverse mortgage regardless of your current income.

Reverse mortgages are more expensive and complex than traditional loans. Before applying for a reverse mortgage you should consider the following.

- The costs of obtaining a reverse mortgage can be very high. You may have to pay some of these costs in cash. However, most lenders allow a portion of these costs to be financed as part of the loan balance. In addition, interest, insurance and service charges will be added monthly to the loan balance. Thus, the amount you owe the lender increases over time.

- Is there another, less costly, means of adding to your income or meeting your financial goal? For example, you may reduce your expenses if you qualify for such benefits as a property tax credit or abatement. Even if you determine that you need a loan, another type of loan may better meet your needs and be less expensive than a reverse mortgage.

- The amount of the loan may not meet your current and future needs. For example, a 65-year old with $50,000 in home equity who wanted a reverse mortgage as a monthly income supplement may get as little as $100 per month on a term mortgage.

- With a reverse mortgage you will retain title to your home and continue to be responsible for paying the property taxes, insurance and for the general upkeep of the property.

- A reverse mortgage may affect your continued eligibility for need-based government benefits programs such as Supplemental Social Security (SSI) and Medicaid. Monthly payments from the loan must be spent within the month they are received. If not, such payments will be considered "income," and may make you ineligible for public benefits. You should contact your benefits provider to ask about how a reverse mortgage may affect your eligibility.

- A reverse mortgage may not be right for you if you want to leave your home, free and clear, to your children or others who will inherit from you. Your relatives will not be able to inherit from you unless they pay off the loan after you have passed away.

- You may be offered the option of using some or all of a lump sum payment to purchase an annuity. An annuity is an insurance product. Monthly payments are made to the you for the rest of your life. The IRS does not tax loan advances as income, but annuity advances may be partially taxable. See a tax professional for guidance.

- Beware of reverse mortgage scams! For example, some senior homeowners have been contacted by firms offering to assist them in finding a lender that does reverse mortgages, in exchange for a "small percentage" of the loan. This information is available for free from the Department of Housing and Urban Development (HUD).

- Compare offers for reverse mortgages. Reverse mortgages vary in cost. Of course, the cost of the loan affects how much cash you ultimately receive from the loan.

- As with any loan, do not sign anything you don't understand. Do not sign a loan application with blank spaces.

How old must I be to obtain a Reverse Mortgage?
You must be at least 62 and own your own home or condominium in order to qualify for a reverse mortgage. If you are married, your spouse can be younger than 62. If so, the spouse would have to be removed from title. Most couples do not choose this option because if the older of the two dies the younger one has to pay off the loan. The better option is for both spouses to be 62 or older. When both spouses are over 62 years of age, and one passes away, the loan is not due until the other spouse moves out of the house permanently or passes away.

How much income do I have to have and how good does my credit have to be to qualify?
There are no income or credit requirements to qualify. It's as simple as that.

Does the bank own my house?
No, you do. You keep title to your home and the equity remains yours. The bank cannot "take" your house. After death the house can be passed to your children or whomever you would like to have it. If you, for example, leave it to a member of the family and that person wants to keep the house and live in it, then the house would have to be refinanced and the Reverse Mortgage would be paid off. If the person who inherits the house wants to sell it and use the remaining equity then the house is sold and the loan is paid off. The money left over after the loan is paid goes to the person who inherited the home.

Can I lose my house after I get a Reverse Mortgage?
The FHA mortgage insurance that covers a Reverse Mortgage loan insures that even if your loan balance exceeds the value of your home you are still protected. You are, however, responsible for paying your property insurance premiums and your property taxes. You can lose your home if you do not pay your property taxes, just as you can with a conventional loan.

How will a Reverse Mortgage effect the equity in my home that I want to leave to my heirs?
The interest charged on your Reverse Mortgage will slowly erode the equity you have in your home. That erosion will be offset, should the home appreciate in value. There are no guarantees that your heirs will be left with any equity. Don't let anyone promise you otherwise, your equity is subject to real estate market conditions. No one knows for sure what those conditions will bring in the future.

Will a Reverse Mortgage affect my social security or medicare benefits?
A Reverse Mortgage is a loan and not considered income. Since it is not income, it does not effect your eligibility. Some programs, though, consider cash in the bank as an asset. So if you have bunch of cash in the bank that could prove to be an issue. You should contact a medicare advisor regarding your benefits.

What choices do I have in receiving the money I get from my Reverse Mortgage?
You can have your proceeds in a lump sum, or you can have them distributed over the rest of your life, or you can have them paid out to you for a set amount of years that you decide, or you can have a combination of those choices. In addition, you can choose to have a credit line of the amount available to you. Give us a call at (978) 750-1080 to discuss the options!

What costs and fees are involved with in a Reverse Mortgage?
Let us quote you with our discounted origination...you will be glad you did!

153 Andover Street Suite 207
Danvers, MA 01923
Toll Free:	(888) 223-7363
Phone:	(978) 750-1080
Fax:	(978) 750-3690
VIPPresident@aol.com