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.
A home equity conversion mortgage (HELM), also known as a reverse mortgage, is a financial tool available to homeowners aged 62 and older in Missouri. This type of mortgage allows seniors to convert a portion of their home's equity into tax-free cash, without having to sell their property or make monthly mortgage payments. In Missouri, there are several types of home equity conversion mortgages available, each catering to different needs. These options include: 1. HELM Standard: This is the most common type of reverse mortgage in Missouri. It provides borrowers with a lump sum payment or a line of credit that they can access as needed. Interest accrues on the amount borrowed, but repayment is not required until the borrower sells the home, moves out permanently, or passes away. 2. HELM for Purchase: This option is specifically designed for seniors who wish to purchase a new primary residence using a reverse mortgage. It allows them to downsize, move closer to family, or relocate to a more suitable home, all while eliminating monthly mortgage payments. 3. HELM Line of Credit: This reverse mortgage option provides homeowners with a line of credit that they can access on an as-needed basis. The unused portion of the line of credit can grow over time, allowing borrowers to potentially access more funds in the future. 4. HELM Refinance: This type of reverse mortgage enables homeowners to refinance an existing mortgage into a reverse mortgage, providing them with additional cash flow or eliminating their monthly mortgage payments. Missouri home equity conversion mortgages are insured by the Federal Housing Administration (FHA) and regulated by the Department of Housing and Urban Development (HUD). To qualify for a reverse mortgage, homeowners must meet certain eligibility criteria, including being at least 62 years old, owning their home outright or having a low mortgage balance, and being able to financially sustain the home. Seniors in Missouri can use the funds obtained from a home equity conversion mortgage for various purposes, such as supplementing retirement income, covering medical expenses, home repairs or modifications, paying off debt, or simply enhancing their overall quality of life. It's important for Missouri homeowners considering a home equity conversion mortgage to consult with a reputable and experienced lender or financial advisor who specializes in reverse mortgages. These professionals can provide personalized guidance and help borrowers navigate the process, ensuring that they make informed decisions that align with their financial goals.A home equity conversion mortgage (HELM), also known as a reverse mortgage, is a financial tool available to homeowners aged 62 and older in Missouri. This type of mortgage allows seniors to convert a portion of their home's equity into tax-free cash, without having to sell their property or make monthly mortgage payments. In Missouri, there are several types of home equity conversion mortgages available, each catering to different needs. These options include: 1. HELM Standard: This is the most common type of reverse mortgage in Missouri. It provides borrowers with a lump sum payment or a line of credit that they can access as needed. Interest accrues on the amount borrowed, but repayment is not required until the borrower sells the home, moves out permanently, or passes away. 2. HELM for Purchase: This option is specifically designed for seniors who wish to purchase a new primary residence using a reverse mortgage. It allows them to downsize, move closer to family, or relocate to a more suitable home, all while eliminating monthly mortgage payments. 3. HELM Line of Credit: This reverse mortgage option provides homeowners with a line of credit that they can access on an as-needed basis. The unused portion of the line of credit can grow over time, allowing borrowers to potentially access more funds in the future. 4. HELM Refinance: This type of reverse mortgage enables homeowners to refinance an existing mortgage into a reverse mortgage, providing them with additional cash flow or eliminating their monthly mortgage payments. Missouri home equity conversion mortgages are insured by the Federal Housing Administration (FHA) and regulated by the Department of Housing and Urban Development (HUD). To qualify for a reverse mortgage, homeowners must meet certain eligibility criteria, including being at least 62 years old, owning their home outright or having a low mortgage balance, and being able to financially sustain the home. Seniors in Missouri can use the funds obtained from a home equity conversion mortgage for various purposes, such as supplementing retirement income, covering medical expenses, home repairs or modifications, paying off debt, or simply enhancing their overall quality of life. It's important for Missouri homeowners considering a home equity conversion mortgage to consult with a reputable and experienced lender or financial advisor who specializes in reverse mortgages. These professionals can provide personalized guidance and help borrowers navigate the process, ensuring that they make informed decisions that align with their financial goals.
