Reverse Mortgage

A Reverse Mortgage is a loan designed for homeowners 62 years or older that allows them to convert home equity into cash without selling their home. Unlike a traditional mortgage, a Reverse Mortgage does not require monthly mortgage payments. Instead, the loan balance is repaid when the homeowner sells the home, moves out, or passes away. Jack Jacobs specializes in helping retirees understand their options and secure a Reverse Mortgage that fits their financial goals.

A Reverse Mortgage allows eligible homeowners to access cash from their home’s equity in the form of a lump sum, monthly payments, or a line of credit. Borrowers continue to own and live in their home while eliminating their monthly mortgage payment. The loan balance grows over time, and repayment is required only when the homeowner moves, sells the property, or passes away. Jack Jacobs will walk you through the process, ensuring you understand how a Reverse Mortgage fits into your financial plan.

To qualify for a Reverse Mortgage, you must:

• Be 62 years or older
• Own a primary residence
• Have sufficient home equity
• Live in the home as your primary residence
• Maintain property taxes, homeowners insurance, and home upkeep

Jack Jacobs will help you determine if a Reverse Mortgage is the right choice based on your home equity and financial needs.

There are different types of Reverse Mortgages, including:

• Home Equity Conversion Mortgage (HECM) – The most common, government-backed FHA Reverse Mortgage
• Proprietary Reverse Mortgage – A private loan for high-value homes that exceed FHA loan limits
• HECM for Purchase – Allows seniors to buy a new home using a Reverse Mortgage instead of a traditional loan

Jack Jacobs will help you choose the best Reverse Mortgage option based on your financial goals and property type.

Yes! The HECM for Purchase program allows seniors to buy a new home with a Reverse Mortgage, eliminating the need for monthly mortgage payments. This is ideal for those looking to downsize, relocate, or move closer to family. Jack Jacobs specializes in Reverse Mortgage for Purchase loans, helping retirees transition to their next home while maintaining financial security.

The amount you can borrow depends on several factors, including your age, home value, interest rates, and available home equity. Generally, older homeowners with higher home equity can access larger loan amounts. Jack Jacobs will provide a personalized estimate based on your specific situation to help you determine how much you can receive.

No! One of the biggest benefits of a Reverse Mortgage is that there are no required monthly mortgage payments. You remain responsible for property taxes, homeowners insurance, and home maintenance. The loan is repaid when you sell the home, move out, or pass away. Jack Jacobs ensures his clients understand their responsibilities and how to maintain their Reverse Mortgage effectively.

When the homeowner passes away, the home typically goes to the heirs. They can choose to sell the home to repay the loan, refinance it into a traditional mortgage to keep the home, or allow the lender to sell the home if the loan balance exceeds the home’s value. Because Reverse Mortgages are non-recourse loans, heirs are not personally responsible for any remaining balance beyond the home’s value. Jack Jacobs will help explain options for protecting your legacy and planning for the future.

Yes! You remain the homeowner and keep the title to your property. As long as you live in the home as your primary residence, maintain property taxes, insurance, and upkeep, you can stay in your home for life. Jack Jacobs will help you structure a Reverse Mortgage that allows you to age in place while maintaining financial freedom.

If you move out of your home for more than 12 consecutive months, the Reverse Mortgage loan balance will become due. At that point, you or your heirs can sell the home to pay off the loan, refinance into a traditional mortgage, or allow the lender to sell the property. Jack Jacobs helps homeowners plan ahead so they can make informed decisions about their future housing needs.

Yes! If home values rise or interest rates drop, you may be able to refinance your Reverse Mortgage to access more equity or secure better terms. Jack Jacobs can review your loan options and help you determine if refinancing is a smart financial move for your retirement.

No! Reverse Mortgage funds are not considered taxable income and will not affect Social Security or Medicare benefits. However, if you receive Medicaid or other income-based benefits, a lump sum payout may impact eligibility. Jack Jacobs recommends consulting a financial planner or tax advisor to ensure a Reverse Mortgage aligns with your overall financial strategy.

As long as you meet the loan requirements, you will not lose your home. You must continue to live in the home, pay property taxes, homeowners insurance, and maintain the property. If these obligations are not met, the lender may initiate foreclosure. Jack Jacobs helps homeowners stay informed about their responsibilities to ensure they remain in their homes with peace of mind.

The Reverse Mortgage process typically takes 30 to 45 days from application to closing. The timeline depends on factors such as home appraisal, counseling sessions, and underwriting requirements. Jack Jacobs works to streamline the process and ensure a smooth, hassle-free experience for every homeowner.

Applying for a Reverse Mortgage with Jack Jacobs is simple:

• Schedule a Consultation – Discuss eligibility and financial goals.
• Attend HUD-Approved Counseling – Required for all Reverse Mortgage applicants.
• Loan Application & Appraisal – Submit necessary documents and complete home evaluation.
• Loan Approval & Closing – Finalize the Reverse Mortgage and access your funds.

Enjoy Financial Freedom – Use your home’s equity to supplement retirement income.