A: Each month, the interest is added to your loan balance. You only repay the loan when you sell the house or when the loan becomes due (such as after you pass away).

A: This mortgage program will be a second lien on your primary residence which allows you to keep your low interest rate first mortgage while tapping into your equity for a lump sum of cash that can be sent to you as a check or wired into your bank account from escrow. You are not required to make monthly mortgage payments, however you can if you chose to as there are no prepay penalties.

A: Both a HELOC and a reverse 2nd mortgage utilize the equity in your home and go into the 2nd lien position. This program offers lump sum distribution with no monthly mortgage payments and a fixed interest rate while the HELOC will usually be a credit line that you can tap into that requires monthly payments on an adjustable rate.

A: The lender requires that you live in the home as your primary residence and that you continue to meet all first mortgage loan obligations and maintain homeowners insurance, property taxes and any HOA dues. Of course just like any mortgage, the lender will also require that you keep the home in livable condition.

A: Yes, eligible 1st liens are fixed rate, in the borrower’s name and fully amortized. Ineligible first liens are adjustable rate mortgages, interest only, or negatively amortized loans, HECM or reverse mortgage, private/hard money loans or deferred tax liens.

A: The loan is required to be paid back when one of the following happens:

– Last borrower passes away
– Borrower no longer uses the home as the primary residence
– Borrower sells or refinances the home
– Borrower does not meet the lender requirements