5 out of 5   Verified Independent Reviews from our Customers

Why Senior Finance?

We are Reverse mortgage experts. Let us help educate you about the program & your available options. There’s No obligation. There’s No pressure. Decide on your terms.

We are not a lead generation site, we do not sell your information to ANYONE. We’re with you every step of the way – from counseling to closing.

We offer a FULL MENU of reverse mortgage products. While some lenders have their own “exclusive” products, Senior Finance has access to ALL of them.

We strive to provide you with the most suitable product at the LOWEST COST.

We work solely in YOUR best interest.

Myths About Reverse Mortgages

Lenders are not in the business of owning homes — they wish to make loans and earn interest. The homeowner keeps the title to the home in their name. What the lender does is add a lien onto the title for the amount that is borrowed so that the lender can guarantee that it will eventually get paid back the money it lends.
The estate inherits the home as usual but there will be a lien on the title for the balance of the reverse mortgage. The balance is whatever proceeds were received from the reverse mortgage plus interest.

For example, let’s assume someone takes out a reverse mortgage and owes $50,000 after 5 years. Then the homeowner passes away and the estate sells the house for $250,000. The lender gets $50,000 and the estate inherits $200,000.

A reverse mortgage is a “non-recourse” loan which means the only asset guaranteeing the loan is the property itself. If the property value is less than the balance of the reverse mortgage, the lender can not request other assets from the estate and must make an insurance claim for the loss to the FHA.

The FHA reverse mortgage was created specifically to allow seniors to live in their home for the rest of their lives. Because the one owner receives payments from a reverse mortgage instead of making payments to a lender, the homeowner can never be evicted or foreclosed on for non-payment. However, it is the homeowner’s responsibility to maintain the home in good condition, keep property insurance current, and pay the property taxes.
The reverse mortgage becomes due when all homeowners have permanently moved out of the property or passed away. There is no time limit.
Government entitlement programs such as Social Security and Medicare are not affected by a reverse mortgage. However, need-based programs such as Medicaid can be affected. To remain eligible for Medicaid, the homeowner needs to manage how much is withdrawn from the reverse mortgage in one month to ensure they do not exceed the Medicaid limits.
The proceeds from a reverse mortgage are not considered income and are not taxable. Furthermore, the interest on reverse mortgage is tax deductible when it is repaid.
Typically the only out-of-pocket expenses are the cost of the counseling and the appraisal. If requested, many lenders will agree to pay the appraisal fee upfront and finance the cost into the loan.
The only similarity between a reverse mortgage and a home equity loan is that both use the home’s equity as collateral.

Any homeowner can apply for a home equity loan. A homeowner must be age 62 to apply for a reverse mortgage.
A home equity loan must be repaid in monthly payments over 5 or 10 years. A reverse mortgage is not paid back until the homeowner moves out of the property or passes away.

A home equity loan requires stable income and a solid credit score. A reverse mortgage does not consider income or credit.

A home equity loan charges no closing costs but has a higher interest rate over the life of the loan. A reverse mortgage charges upfront closing costs but has lower interest over the course of the loan.


Licensing

NMLS # 93443
NY, Dept. of Financial Services #A005375
NJ, Dept. of Banking & Insurance #9926426
CT, Dept. of Banking #10652
PA, Banking Dept. #45595
FL, Office of Financial Regulation #MBR104

Loans arranged with 3rd party providers

Subscribe

Get on our email list to get the latest Reverse Mortgage news.

Senior Finance

149 Madison Ave
New York, NY 10016
P: 888.588.0944
E. info@seniorfinance.com