Koala Financial, Inc.
AN accountancy corporation
Non Borrowing Spouse (< 62) is now protected
All FHA HECM’s are insured through the Federal Housing Administration (FHA)
Borrowers have no limit as to how long they can stay in the home
When loan becomes due, Estate can buy your home at 95% of current value, regardless of what is owed
Education – Financial counseling is required (provided by HUD)
A loan for seniors age 62 and older
Converts a portion of home equity into cash with no monthly mortgage payments
Majority of reverse mortgages are HECMs (Home Equity Conversion Mortgage, a federally insured program)
No monthly mortgage payments
Non-recourse loan – you’ll never owe more than what home is worth
Leverage crucial retirement cash liquidity
No limitations on how you use funds
No pre-pay penalty
You must live in home as your principal residence.
No repayment of the mortgage is required until you permanently move out, sell the home, or pass away.
You are required to continue paying property taxes and insurance and maintain the home according to FHA guidelines.
The HECM is insured through FHA and is a non-recourse loan.
The homeowner or their heirs will never be asked to pay back more than the value of the home, even if the debt has grown to be greater than the value.
Prepare for counseling meeting
Continue keeping property taxes and homeowners insurance current
Home value, owner age(s), and current interest rate determine eligible amount to borrow
Be 62 years of age or older
Own the property outright or have considerable equity
Occupy the property as your principal residence
Not be delinquent on any federal debt
Participate in a consumer information session from HUD
Today, more homeowners are using reverse mortgages as a key part of their long-term retirement strategy. Here are some smart ways to use the New Reverse Mortgage to help meet your retirement goals:
• Pay off a traditional mortgage, to eliminate monthly mortgage payments
• Make retirement savings last longer
• Preserve investment accounts during market downturns with a “standby” line of credit
• Supplement income with monthly tenure payments
• Use a line of credit to build a safety net for emergencies, home repairs, and healthcare expenses
• Afford to retire earlier, or else wait until later to maximize lifetime Social Security benefits
• Buy a home that better fits your needs
• Support “aging in place” expenses, including caregiving and home modifications.