Frequently Asked Questions
What is a Reverse Mortgage?
A Reverse Mortgage is a unique type of loan that offers homeowners age 62 and older an opportunity to convert the equity in their home into available cash. Financial security is achieved with this federally-insured loan without worries about repayment until you no longer live in your home. So you can never be forced out of your home for “missing a payment.”
Are there different types of Reverse Mortgages?
Yes, there are different types of Reverse Mortgage programs that are designed to fit different situations. Each program has a unique set of guidelines that need to be considered to insure that you choose the program that's right for you. You can use this helpful comparison chart to help with your decision. The different types of loans available from Province Mortgage Associates are as follows:
FHA - Home Equity Conversion Mortgage [HECM]
The Home Equity Conversion Mortgage is the most popular and flexible Reverse Mortgage program available. This program gives the consumer the most available money and the most flexibility in considering how a consumer will take the available funds. This program is available with monthly and annual rate adjustment features. You can use this helpful comparison chart to help with your decision.
The Fannie Mae Reverse Mortgage program is similar to the HECM program and the differences of this program may make sense in your particular situation. You can use this helpful comparison chart to help with your decision.
The Cash Account programs are not insured by the U.S. Government. These programs are designed for homes that are higher in value and/or for consumers looking for a unique financial planning tool. There are different Cash Account programs available through Province Mortgage Associates that provide consumers access to more of the equity in their home than the government programs. You can use this helpful comparison chart to help with your decision.
Who is eligible for a Reverse Mortgage?
If you own a single 1-4 family home or condominium and you are at least 62 years old, then you will probably qualify. There are no credit or income qualifications to obtain a Reverse Mortgage from Province Mortgage Associates.
How much money can I get?
The amount of cash available from a Reverse Mortgage depends on the following criteria: your age, your home's value and location, and current interest rates. For an estimate see the NRMLA Reverse Mortgage Calculator. You can also call a specialist at Province Reverse Mortgage to set up a free, no-obligation personal meeting and/or calculation.
How do I receive the money?
You have several choices. You can take all of the money in one lump sum, as automatic monthly installments, a line of credit (most popular) or a combination of these. You have the ability to choose the option that will work the best for you. Your Province Mortgage Associates Specialist will discuss all of your options with you.
Are there any restrictions on what I can use the money for?
No. It is your money to use as you would like. Some people pay for the necessities of home health care, medication, property taxes and home repairs; others choose to travel or pursue an education; and still others just want the comfort of knowing they have a cushion against the unexpected.
How is a Reverse Mortgage different from a home equity loan?
Both loans convert the equity in your home into available cash, but in very different ways. With a Home Equity loan, you must have sufficient income to qualify and you must make monthly payments. With a Reverse Mortgage from Province Mortgage Associates, there are NO income requirements, NO monthly payments, and the Reverse Mortgage PAYS YOU!
Is there an easy comparison of the different facets of reverse mortgages?
Yes! We encourage you to use our comparison chart to help with your decision. It compares the various facets of Reverse Mortgages and addresses some of the most commonly asked questions we hear from our customers.
Call for more information or click here and answer a few general questions to have a qualified Reverse Mortgage Specialist call you with specific answers to your specific situation.