Reverse mortgage loans must be repaid when the home is no longer your primary residence. The loan may also become due if loan terms are not met, such as failure to pay property taxes or homeowners insurance, or if the home is not properly maintained. One of the unique advantages of a reverse mortgage is that it is a non-recourse loan, meaning that no matter when the loan comes due, the lender won’t require you to pay back more than the value of the home.

To be eligible for a reverse mortgage, as a borrower:

• You or your spouse must be age 62 or older (a non-borrowing souse may be under age 62)**
• You must own your home and live in it as your primary residence
• You must have sufficient equity in your home
• You must pass product specific residual income and credit requirements
• You must complete reverse mortgage counseling by an independent, HUD-approved counselor

**Age requirements differ by product and state.

A reverse mortgage can help in numerous ways; here are three of the most common ways a reverse mortgage helps the borrower:

1. Eliminates monthly mortgage payments*
2. A reverse mortgage means payment optionality, freeing up cash that was being paid monthly to a traditional mortgage.

1. Allows you to stay in your home and age in place
2. Just like with a traditional mortgage, your home stays in your name and as long as you continue to comply with loan requirements, such as paying property taxes and insurance, and HOA fees, so you have the safety to stay in your home.

3. Access to extra cash
4. The extra cash you receive is tax-free². Your loan proceeds can be used at your discretion. Most commonly, funds are used to pay off high-interest debt, making home repairs or modifications or supplementing monthly income.

*Borrower must pay property taxes, insurance, HOA fees and maintain the property.
²Consult a tax advisor and appropriate government agency for any affect on taxes or government benefits.

Yes! The most common type of reverse mortgage is a HECM - a federally insured loan. At Smartfi Home Loans, we also offer Smartfi Choice, a reverse mortgage designed to open up possibilities for borrowers whose needs or qualifications don't quite fit those of a HECM.

Yes! With a reverse mortgage, the title to the home remains with the borrower as long as you continue to pay property taxes, insurance, HOA fees, maintain the property and otherwise comply with loan terms.

• Eliminating monthly mortgage payments*
• Allowing you to stay in your home and in possession of your home*
• Having access to tax-free² cash
• Non-recourse loan – not having to repay more than your home's worth
• Giving you freedom to spend your cash on what you need or want
• Only pay interest on funds borrowed
• Unused HECM line of credit grows over time⁴
• Payments can be made throughout the life of the loan to increase equity and pay down the loan balance

Yes, you can pay off your reverse mortgage at any time without a pre-payment penalty.

Note: If you pay your HECM line of credit down to $0, it will close the line of credit. A minimum balance of $50 is suggested to keep the line of credit open.

Yes, you can use a reverse mortgage along with the equity in the house you are purchasing, and the proceeds from the sale of your current residence (or other funds), to buy your new home. By doing so, you’ll have no monthly mortgage payment* and can enjoy retirement in a home that may be more suitable to your needs.

*Borrower must pay property taxes, insurance, HOA fees and maintain the property.

Your children have options when it comes to your home. Typically, the loan is repaid through the sale of the home. Your heirs can choose to sell the home, pay the loan and receive any remaining equity; or they can purchase/refinance the home with a new (traditional) mortgage, potentially at less than the appraised value. It’s important that the loan servicer is contacted to understand all available options.

A reverse mortgage can offer significant financial flexibility, helping to alleviate many of the financial pressures you may face. From eliminating your monthly mortgage payments* to covering unexpected expenses, a reverse mortgage can be a valuable tool.

• Cover healthcare costs, pay off bills, or eliminate an existing mortgage* to boost your monthly cash flow.
• Make necessary home repairs or modifications that allow you to "age in place" comfortably.
• Avoid taxable withdrawals from your 401(k) or other retirement accounts by using tax-free² reverse mortgage proceeds.
• Set up a growing line of credit as a safety net for emergencies or future expenses.⁴
• Provide financial assistance to a child or grandchild for major expenses, such as a down payment on a home or college tuition.

*Borrower must pay property taxes, insurance, HOA fees, and maintain the property.
²Consult a tax advisor and appropriate government agency for any affect on taxes or government benefits.
⁴Not available on all products.