Louisiana Reverse Mortgages

With reverse mortgages, we can assist you with preparing for a long and fruitful retirement using the equity in your home. You may not be aware that there is a legal, safe and effective way to be paid to remain in your home throughout your retirement for as long as you occupy the property. It is called a reverse mortgage. The program is open to all seniors who are over the age of 62, have equity in their principle residence and wish to obtain up to $625,000 under FHA terms or more under private terms. We can help you to find out if a reverse mortgage is right for you.

Consider that a reverse mortgage has a number of very attractive features for seniors, such as:

  • The borrower can remain in their home until they die
  • No income or credit verification
  • No monthly or annual payments
  • Repayment is made once the borrower dies or moves out of the house
  • Proceeds are tax-free and can be in a lump sum, stream of payments, line of credit, or combination thereof
  • Interest may be tax deductible on loan repayment [consult tax advisor for details]
  • The loan is fully insured by the federal government
  • The heirs still inherit the home
  • The loan proceeds can pay off existing mortgages
  • The process does not impact Social Security or Medicare

Recent changes to the program also allow you to purchase a property and never make a payment, with the down payment amount decreasing according to age. For example, a 62-year-old person could make a 38% downpayment on a property and never make another payment again. In many cases the sale of the first home could cover the cost of the down payment, leaving you with one less payment to worry about every month during your retirement.

Contact us to learn about how you could potentially spend the rest of your life in your home and never pay the bank a penny. In fact, you will be paid to remain in your home.

Alternatively, Sign up for our Louisiana Real Estate Commission licensed reverse mortgage seminar.

Louisiana Reverse Mortgages

Additional Information

Videos

The Pros and Cons of a Reverse Mortgage

Suze Orman on Reverse Mortgages

FAQs
What is a Reverse Mortgage?

A reverse mortgage is a non-recourse loan that allows homeowners aged 62 and older to convert home equity into cash or as a means to purchase a new home without having to worry about paying a monthly note.

What are the requirements for a Reverse Mortgage?

The primary requirements for a reverse mortgage are simple: be 62 or older and have equity in a principle residence. There are a few other requirements prior to closing, too. The borrower must attend a third party counseling session by an HUD-certified nonprofit agency that is designed to protect seniors. The lender will have an FHA appraisal done on the property to determine its market value.

What parties are involved in a Reverse Mortgage?

There are always at least three parties involved in a reverse mortgage: a borrower, the lender and the title company. Frequently, real estate agents are involved in providing guidance to the homeowner borrowers as well.
1. Borrower
The borrower is the owner of the principle residence who would like to convert his / her home equity into one or more tax-free cash payments to be used for essentially any purpose.
2. Lender
The lender is the financial institution that agrees to lend the borrower money in exchange for a mortgage on the property. The lender will not require any payments from the borrower. The lender pays the borrower.
3. Title company
The title company’s role is to facilitate the transaction by verifying compliance with all closing rules and regulations, having the borrower and lender sign relevant paperwork, and by holding the loan proceeds in escrow until all paperwork has been completed.
4. Real estate agent
The agent’s role in the process is to provide objective guidance for seniors who may be good candidates for a reverse mortgage. This guidance involves determining the client’s needs and potential qualification level, a market value of the existing residence, and finding an appropriate new residence for them (if applicable).

What are other Non-income reasons to enter into a Reverse Mortgage?

There are actually a number of very good non-income reasons for entering into a reverse mortgage. In addition to tax savings, a reverse mortgage offers seniors:
· the ability to remain secure in their home until death
· a tool to move closer to children or grandchildren
· the ability to downsize to a more retiree-friendly home
· the ability to use investable assets to acquire additional investment properties
· the ability to improve their living situation by moving into a bigger house or better area
These factors help to support the economic logic of entering into a reverse mortgage for particular types of seniors.

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