April 26th Speaker - Reverse Mortgages

Our speaker on April 28 was Chris Valdez of 1st USA Reverse Mortgage. Chris spoke to us about how reverse mortgages work and discussed some misconceptions that people generally have about reverse mortgages.  Reverse mortgages can help seniors with their cash flow, unexpected expenses, supplemental income, and the cost of in-home care.  She discussed the advantages and disadvantages.  The loans are HUD guaranteed-loans and the heirs will never owe more the value of the house.  The payment plan can be customized and the older you are the more money you may get.  To qualify, you are required to have at least 50% equity in your home and it must be your primary residence. There is a 60/40 rule - you can take out 60% at closing and the rest a year and one day later.  Chris also discussed how a HECM loan can also be used to purchase a new home and not have any monthly payments.  For more information, go to 1stUSAReverseMortgage.com.