A reverse mortgage is a loan from the U.S. Government for 50% to 75% of the value of a home owned by a homeowner aged 62 and older. Instead of making monthly payments to a lender, as with a regular mortgage, a lender makes payments to the homeowner. The funds from a reverse mortgage are tax-free. The loan doesn't have to be repaid in the homeowner's lifetime, however, when the homeowner dies, the money received plus approximately 4% interest is repaid by their estate. The loan is repaid when the homeowner ceases to occupy the home as a principal residence, due to the homeowner (the last remaining spouse, in cases of couples) passing away, selling the home, or permanently moving out.
Idaho Home Equity Conversion Mortgage (HELM) is a type of reverse mortgage designed for homeowners in Idaho who are 62 years of age or older. With an HELM, homeowners can convert a portion of their home equity into tax-free cash without having to sell their home or make monthly mortgage payments. It is a popular financial tool for retirees looking to supplement their retirement income, cover healthcare expenses, or pay off existing debts. Here are the different types of Idaho Home Equity Conversion Mortgages — Reverse Mortgages: 1HELMCM Standard: This is the most common type of HELM in Idaho, available for most homeowners who meet the requirements. It provides a larger loan amount and offers various disbursement options such as a lump sum, monthly payments, a line of credit, or a combination of these. 2. HELM Saver: This type of HELM offers lower loan amounts and reduced upfront costs compared to HELM Standard. It is ideal for homeowners who need a smaller loan but still want the benefits of a reverse mortgage. 3. HELM for Purchase: This is a specialized HELM product that allows seniors to purchase a new primary residence using a reverse mortgage. It enables older adults to downsize, move closer to family, or relocate to a more suitable home without a monthly mortgage payment. Benefits of Idaho Home Equity Conversion Mortgage — Reverse Mortgage: 1. Loan proceeds are not taxable: The cash received from an HELM is considered a loan advance, which means it is tax-free. This feature ensures that homeowners can use the funds without incurring additional tax liabilities. 2. No monthly mortgage payments: With an HELM, homeowners are not required to make monthly mortgage payments during the loan term. This can provide significant relief for retirees with limited fixed incomes. 3. Retain ownership of the home: Idaho HELM borrowers continue to own and live in their homes as long as they meet the loan's obligations, such as maintaining the property and paying property taxes and homeowners insurance. 4. Flexibility in fund disbursement: Idaho homeowners can choose how they receive the loan proceeds, whether as a lump sum, monthly payments, a line of credit, or a combination. This flexibility allows borrowers to tailor the loan to their financial needs and goals. 5. FHA-insured protection: All Idaho Helms are insured by the Federal Housing Administration (FHA), ensuring that borrowers are protected in case the lender fails to fulfill its obligations. It's important for potential borrowers to consult with a qualified reverse mortgage counselor or a lender specializing in Idaho Helms to fully understand the details, eligibility requirements, and potential risks associated with a Home Equity Conversion Mortgage in Idaho.Idaho Home Equity Conversion Mortgage (HELM) is a type of reverse mortgage designed for homeowners in Idaho who are 62 years of age or older. With an HELM, homeowners can convert a portion of their home equity into tax-free cash without having to sell their home or make monthly mortgage payments. It is a popular financial tool for retirees looking to supplement their retirement income, cover healthcare expenses, or pay off existing debts. Here are the different types of Idaho Home Equity Conversion Mortgages — Reverse Mortgages: 1HELMCM Standard: This is the most common type of HELM in Idaho, available for most homeowners who meet the requirements. It provides a larger loan amount and offers various disbursement options such as a lump sum, monthly payments, a line of credit, or a combination of these. 2. HELM Saver: This type of HELM offers lower loan amounts and reduced upfront costs compared to HELM Standard. It is ideal for homeowners who need a smaller loan but still want the benefits of a reverse mortgage. 3. HELM for Purchase: This is a specialized HELM product that allows seniors to purchase a new primary residence using a reverse mortgage. It enables older adults to downsize, move closer to family, or relocate to a more suitable home without a monthly mortgage payment. Benefits of Idaho Home Equity Conversion Mortgage — Reverse Mortgage: 1. Loan proceeds are not taxable: The cash received from an HELM is considered a loan advance, which means it is tax-free. This feature ensures that homeowners can use the funds without incurring additional tax liabilities. 2. No monthly mortgage payments: With an HELM, homeowners are not required to make monthly mortgage payments during the loan term. This can provide significant relief for retirees with limited fixed incomes. 3. Retain ownership of the home: Idaho HELM borrowers continue to own and live in their homes as long as they meet the loan's obligations, such as maintaining the property and paying property taxes and homeowners insurance. 4. Flexibility in fund disbursement: Idaho homeowners can choose how they receive the loan proceeds, whether as a lump sum, monthly payments, a line of credit, or a combination. This flexibility allows borrowers to tailor the loan to their financial needs and goals. 5. FHA-insured protection: All Idaho Helms are insured by the Federal Housing Administration (FHA), ensuring that borrowers are protected in case the lender fails to fulfill its obligations. It's important for potential borrowers to consult with a qualified reverse mortgage counselor or a lender specializing in Idaho Helms to fully understand the details, eligibility requirements, and potential risks associated with a Home Equity Conversion Mortgage in Idaho.
