Please Note: Starboard Financial does not offer Reverse Mortgages at this time.

As people enter their senior years it is important that they be prudent about their finances, and be on the lookout for those who might try to take advantage of them. There are a lot of people and organizations who will assume that an older person is out of touch with modern ways or is experiencing some level of cognitive decline, and unfortunately they respond to that assumption by taking advantage of them financially.

Reverse mortgages are one method that some of these scammers have chosen to take advantage of seniors, but that doesn’t mean reverse Chandler mortgages are a bad thing. It simply means that it is especially important that seniors who are considering a reverse mortgage go about getting one in the right way.

Most importantly, an HECM mortgage should be initiated by the homeowner, not by an unsolicited offer. The unsolicited offers are more likely to be scams that can lead to seniors losing their homes. By taking control of the process with a reputable lender, seniors retain the title and ownership of their home throughout the life of the loan as long as they continue to live in the home and maintain it.

Making Sure the Program is Legitimate

If you are a senior with a Chandler mortgage and have been considering the possibility of a reverse mortgage, it is important to give the decision the serious consideration it deserves. Additionally, you should make sure that you are working with a reputable lender that has the support of the U.S. Dept of Housing and Urban Development.

Officially, the true name for a reverse mortgage is Home Equity Conversion Mortgage (HECM) and it is administered by the Federal Housing Administration. HECM loans give seniors the option of tapping into the equity in their home and drawing out cash without the burden of being taxed on that money. By getting an HECM loan, the borrower is able to forgo making the actual “mortgage” portion of their house or condominium payment. Instead, they will only need to pay for their insurance, property taxes, and for the upkeep of the home. They will no longer need to actually pay the Chandler mortgage.

HECM Requirements

In order to be considered for a HECM loan, a homeowner needs to be over age 62, have all or a considerable amount of the mortgage paid, and be living in the home. In addition, they be able to show their financial ability to pay any insurance or fees associated with the property, including insurance, association fees, and property taxes. The home must also meet FHA property standards and flood requirements. The homeowner’s income and financial obligation will be reviewed before the homeowner can seek a loan for their Chandler mortgage with an FHA-approved lender.

Once it is determined that a homeowner meets these basic requirements, the loan applicant will need to meet with an HECM counselor who will explain the financial implications of the loan and present them with any other options that may be applicable in their situation.

If you, or a senior family member are looking at a Reverse Mortgage as an option for their Chandler Mortgage, contact Starboard Financial and let us help to guide you in this important financial decision.