Reverse Mortgage Information
Alabama’s only direct Reverse Mortgage lender. With offices in Birmingham and Huntsville, Alabama, Scott Underwood, is “Alabama’s Reverse Mortgage Guy” since 2007 handling only Reverse Mortgages! Also the Vice President of Alabama’s New South Mortgage; the only in state Reverse Mortgage lender!
What is a reverse mortgage or (HECM) Home Equity Conversion Mortgage and how does it work? Scott Underwood will be happy to assist with questions you have about the pros, cons, example illustrations, and requirement information.
I still believe in handling everything face to face. But if you prefer we can use mail, fax, or priority mail. Covering areas near my Hoover office are Birmingham, Chelsea, Hoover, and Vestavia Hills. Huntsville office I cover everything between Huntsville and Birmingham.
Ways to utilize a Reverse Mortgage. Some of the main ways people utilize the Reverse Mortgage I have seen are an immediate cash needs, supplementing retirement income, in home health care, paying off a mortgage and having no mortgage payment ever again.
Reverse mortgage loans are a way for older homeowners to convert their home’s value into tax-free cash, without having to sell or move. Insured by the U.S. government, the Department of Housing and Urban Development (HUD) allows Homeowners who are 62 or older to borrow against the equity of their homes.
Qualifying homeowners can choose to receive tax-free payments from reverse mortgage lenders either on a monthly basis, in a lump sum (over a 2 year period), or as a line of credit.
No repayments are required while a borrower lives in the home. Social Security and Medicare benefits are not affected.
The lender recovers the loan amount, plus interest when the home is sold (because owners choose to move, or pass away).
When the loan is paid in full, all equity associated with the property will be distributed to your heirs.
Reverse Mortgage borrowers continue to own their homes. Because there are no monthly loan payments due, the amount owed grows over time. That means that the amount and the remaining equity in the home decreases.
Borrowers must continue to pay homeowner’s insurance and property taxes on the house during the loan period. It is also the borrower’s responsibility to keep up with repairs. In fact, if a borrower fails to adhere to any of these obligations, it may become immediate cause for the loan to become due. In which case, it would become payable in full.
Do I qualify for a reverse mortgage? You must be age 62 or older. And you must occupy the home as your primary residence – for the majority of the year. Borrowers must own the home outright or have a low enough balance on the existing mortgage that it can be paid off from the proceeds of the reverse mortgage. You must also pass a financial assessment test. Ask me for information on this. The Reverse Mortgage now has a credit check, where a few years back the was not one.
Each borrower listed on the title must apply for the reverse mortgage loan, and must attend a mandatory counseling session; usually a 30 minute phone call.
- Does my home qualify for a reverse mortgage? This has to be your primary residence, must meet HUD standards. The reverse mortgage must also be the only mortgage held against the residence. That means that if there is a current mortgage on the property, it may be able to be paid off with the proceeds of the reverse mortgage.
Other information needed to make a decision. I will answer all of your questions, and be your only contact. We get these done so much easier that out of state lenders, that I find there is no need to have my processors call you.
How is the loan amount determined? The amount of the loan is based on: The age of the youngest borrower The appraised amount of the property, Must have substantial funds left over to pay homeowners insurance, property charges, and property taxes.
What are my reverse mortgage options? The Home Equity Conversion Mortgage (HECM) is the only reverse mortgage that is insured by the Federal Housing Administration (FHA). The FHA guarantees that HECM lenders meet their obligations, governs how much HECM lenders may loan to qualified borrowers, and limiting loan costs. Because this is a government insured program, loan counseling is required, by an approved HUD counselor,
We always welcome family and “adult children” or as were called the “sandwich generation” in the process, so don’t hesitate to call and get the information without worrying that someone will call daily and bother you.
- Reverse Mortgages offer 4 draw options:
- Combine all three, 60% lump sum 1st year, monthly income for a fixed term, line of credit, or mix of all options.
Please Call Birmingham at (205) 908-2993, Huntsville at (256) 677-9767, (251) 333-4200. You can email Scott at ReverseMortgageAlabama@gmail.com for or a no obligation illustration and information packet.
Information that will surprise you: 250 Reverse Mortgages are done each month in Birmingham, Alabama, and over 15,000 are done annually in the United States! Also, Reverse Mortgages have been adopted by other countries such as Canada, Australia, New Zealand, the United Kingdom, South Korea, India, and China.