Reverse mortgage loans are a popular financing option for seniors in Nampa, Idaho, that allow 62 and older homeowners to tap into their home’s equity for increased cash flow in their golden years.
How Does a Reverse Mortgage in Nampa Work?
Reverse mortgage loans allow homeowners aged 62 and older to convert a portion of their home equity into cash. If there is still a balance on the home, the reverse mortgage pays it off, thus eliminating the burden of obligatory monthly mortgage payments. All the borrower needs to take care of are the property charges, such as taxes, insurance, and maintenance.
The cash from a reverse mortgage is considered loan proceeds, meaning it’s tax-free* and can be used for various purposes, including home improvements, medical expenses or simply having a more enjoyable retirement.
Our Reverse Mortgage Loans in Nampa, Idaho
Home Equity Conversion Mortgage (HECM)
Insured by the Federal Housing Administration (FHA), the Home Equity Conversion Mortgage (HECM) is the most prevalent type of reverse mortgage. The FHA guarantees that if the balance on the loan exceeds the home’s value when it’s sold, the borrower or the heirs will not be responsible for the difference (the FHA will pay it).** This can offer great peace of mind to people who worry about passing on debt to their loved ones.
HECM for Purchase (H4P)
Designed explicitly for seniors who wish to buy a new home, the HECM for Purchase (H4P) enables borrowers to use it for purchasing a new primary residence. The H4P can greatly increase homebuying power, sometimes up to 200%. This can enable seniors to move to more expensive areas or homes without having to drain their savings and start a new mortgage. Like a traditional HECM, there are no obligatory monthly mortgage payments, leaving the borrower to handle property charges like taxes, insurance and upkeep.
Jumbo Reverse Mortgage Loans
Jumbo reverse mortgages are intended for homes with high values that surpass the FHA’s HECM loan limit of $1,089,300. The amount of cash available is calculated based on the home’s assessed value, and borrowers generally have more payment alternatives to choose from than with HECMs. Note that jumbo reverse mortgage loans are not standardized and FHA-insured, which means terms and conditions can vary from lender to lender.
Nampa Reverse Mortgage Loan Benefits
People get reverse mortgages for many reasons, including:
Access To Cash
A reverse mortgage loan allows borrowers to convert a portion of their home equity in the form of cash, which can be used to cover expenses, pay off debt or supplement retirement finances.
Realize Home Equity Gains
Home equity hit all-time highs recently, but without selling the home, the only result that most homeowners see from a higher home value is higher property taxes. A reverse mortgage loan lets borrowers benefit from their home’s appreciation while enabling them to own and live in the home as their primary residence.
Portfolio Hedging and Buffer Strategy
For those on a fixed income, a down market can mean serious belt-tightening or selling off investments at a loss. Many people use their reverse mortgage loan proceeds to cover expenses during market downturns to preserve their standard of living and retirement assets.*
Stay in the Home
Reverse mortgage loan holders retain full ownership of their homes and no one can make them leave as long as they comply with the loan terms.
No Monthly Mortgage Payments
With a reverse mortgage loan, borrowers are not required to make monthly mortgage payments, which can be a massive relief to many retirees and enable many people to retire earlier than they could have otherwise. Instead of monthly mortgage payments, they must simply pay property charges, like insurance, taxes and home upkeep.
Flexibility
Borrowers have flexibility in how they receive their funds, with options including a lump sum payment, monthly payments, a line of credit with guaranteed growth (applies to unused funds) or a combination of these options. The borrower can use the loan proceeds for any purpose they see fit.
Government-insured
HECMs are the only reverse mortgage loan insured by the Federal Housing Administration (FHA), which offers a host of additional consumer protections.
Long-term Care (LTC)
Many people get a reverse mortgage loan to pay for LTC. Rather than moving into a nursing home or assisted living facility, a borrower could use their proceeds to pay for in-home care and modify their home for easier access and comfort.
Interested in a Reverse Mortgage Loan in Nampa, Idaho?
Fill out the form and one of our reverse mortgage specialists will be in touch!
*This advertisement does not constitute tax or financial advice. Please consult a tax and/or financial advisor regarding your specific situation.**There are some circumstances that will cause the loan to mature and the balance to become due and payable. Borrower is still responsible for paying property taxes and insurance and maintaining the home. Credit subject to age, property and some limited debt qualifications. Program rates, fees, terms and conditions are not available in all states and subject to change.