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It's Your Money

One of the most common questions asked about the proceeds from a reverse mortgage loan is:

Are there any restrictions on what I can do with the money I receive from a reverse mortgage?*

The answer is No! Other than retiring any current liens against the property, the proceeds from a reverse mortgage loan are yours to use as you desire. Some of the things our borrowers have used their reverse mortgage loans for are:
  • Pay off an existing mortgage to eliminate house payments

  • Stretch your retirement account to insure cash flow survival

  • Receive additional non-taxable income

  • Pay off credit card debt or medical bills

  • Purchase a home for your primary residence**

  • Pay for in-home or assisted living care

  • Pay property taxes

  • Cover health care expenses

  • Buy a second home, or a vacation getaway

  • Help pay for college for grandchildren

  • Remodel or repair your home to increase it's value

  • Have money to travel

  • Help your children (or grandchildren) buy a home

  • Maintain an independent lifestyle free from financial worry

Of course, there are always the disclaimers:

The Lender does not require, offer, or arrange the purchase of annuities in connection with your reverse mortgage transaction, nor do they endorse or recommend the purchase of any other financial products. It is not necessary to consult or pay an estate planner to procure a HECM Reverse Mortgage.

In other words, it is strongly advised that you do not use the proceeds from your reverse mortage loan as investment funds.

*Changes to the HECM guidelines in October 2013 restrict borrowers to withdrawing no more than 60% of their available loan funds in the first year. If mandatory obligations exceed 60%, then the first year allowable draw is mandatory obligations + 10%.

**Borrowers must have verified funds to close
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HECM Basics
12 Facts
Borrower Qualifications
The Loan Process
Financial Assessment
Who Owns the Home?
Who Owns the Equity?
When is the Loan Due?
A Non-Recourse Loan
It's Your Money
HECM for Purchase

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First Federal
Savings Bank
NMLS 402963
1880 S Eagle Rd
Meridian, ID 83642

dcook@bankfirstfed.com
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Home | HECM Basics | 12 Facts | Borrower Qualifications | Loan Process | Financial Assessment
Who Owns the Home? | Who Owns the Equity? | When is the Loan Due? | A Non-Recourse Loan | It's Your Money
| HECM for Purchase |
Copyright© 2019 Doug Cook FDIC & Equal Housing Lender Logo
HECM borrowers are responsible for the payment of property taxes, homeowners insurance, and the maintenance of their home. Rates and fees vary by lender. All credit products subject to approval. Information presented was not created or approved by HUD/FHA.
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First Federal Savings Bank | 1880 S Eagle Rd | Meridian, ID 83642
Institution NMLS: 402963

www.MortgageFirstFed.com/dcook
www.BankFirstFed.com

First Federal Savings Bank provides HECM Reverse Mortgage lending in the states of
Idaho, Oregon, Washington, Montana, Wyoming, Utah and Nevada.
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