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The Senior Lifestyle Mortgage

Commonly known as a reverse mortgage or a Home Equity Conversion Mortgage, we prefer to call this financial product precisely what it is - a Senior Lifestyle Mortgage.

These HUD-backed and FHA insured lending programs enable senior homeowners to tap into their equity without selling their home. The lender initiates a government secured home equity line specifically designed for senior homeowners. Based on the age of the borrower and the value of the home,  the borrower can receive a lump sum, a monthly proceeds payment or a line of credit to draw from at any time for any reason.

Repayment is not necessary until the borrower sells the property, moves, or passes away. When you sell your home or no longer use it as your primary residence, you or your estate must repay the cash you received from the Senior Lifestyle Mortgage plus interest and other finance charges to the lender.

To see how much you qualify for, visit www.eldercalc.com

Visit our "full details" web site to learn more:  www.seniorlifestylemortgage.com

Ideal for senior homeowners who wish to use existing equity in their home to manage personal and family living requirements. That's why we call it the Senior Lifestyle Mortgage.

Interest rates can be fixed or adjustable and the money is nontaxable; nor does it interfere with Social Security or Medicare benefits. Your lender cannot take the property away and you can never be forced to sell your home to pay off your loan even if the loan balance grows to exceed property value.

At the point of future pay-off through the sale of your home, you or your estate will not be required to pay back any amount greater than the value of the home at that time (even if the home is worth less than your loan balance).

You can also use the program to downsize to that special condo or village home where you want to live through your golden years. Let's say you sell your current home for $400,000 and want to downsize to a condo selling for $250,000.

Normally, as a senior homebuyer without employment income, you would have no choice but to take $250,000 of your selling proceeds to purchase your new home outright. That would leave only the remaining $150,000 in your savings to manage your lifestyle affairs.

But, with a Severn Mortgage HECM for Purchase Loan, a senior purchaser age 71 could utilize approximately $157,879 as a government-backed downpayment on the new home. Therefore, this buyer would only need to bring approximately $92,121 to settlement. That would leave a little over $300,000 in the buyer's retained savings account. 

Keep in mind that the above example is for illustrative purposes only and that the actual qualifying proceeds are based on age, current interest rates, and other guidelines established by the FHA.

 Request a Senior Lifestyle Mortgage Information Kit