Reverse Mortgage Specialist in Sioux Falls

Why South Dakota Families Trust Jeff

• Certified reverse mortgage specialist backed by Fairway Independent Mortgage
• Local knowledge of South Dakota home values, including rural properties
• An education-first, no-pressure approach. You decide what is right for you

What Is a Reverse Mortgage?

A reverse mortgage, also called a Home Equity Conversion Mortgage (HECM), lets homeowners 62 and older turn part of their home equity into cash. You keep the title to your home. There are two ways to use it.

HECM Refinance

Replace your current mortgage and turn equity into cash. This can end your monthly mortgage payment. You can take your money as a lump sum, a line of credit, monthly payments, or a mix.

HECM for Purchase

Buy a new home with a reverse mortgage. You make a down payment of about 35 to 55 percent, and you have no monthly mortgage payment after closing.

How a Reverse Mortgage Can Change Retirement

• No monthly mortgage payment. You still pay property taxes, insurance and upkeep
• Flexible access to your funds. Proceeds are generally not taxed, so check with your tax professional
• Non-recourse protection. You or your heirs will never owe more than the home is worth
• Stay in your home as you age, as long as you meet the loan terms
• Help covering health care costs between age 62 and Medicare at 65
• A way to pay for long-term care

Working With Your Financial Advisor

A reverse mortgage can be one piece of a bigger retirement plan. Jeff works with advisors on ideas like these:

• Delay Social Security to age 70 by using a line of credit from age 62
• Use a line of credit that can grow over time at the loan's interest rate
• Lower the risk of selling investments when the market is down
• Pay for long-term care without selling securities

Reverse Mortgage Myths and Facts

Myth: The bank owns my home.

Fact: You keep the title. The lender holds a lien, just like a traditional mortgage.

Myth: My heirs will be stuck with the debt.

Fact: Heirs are not personally responsible for more than the home is worth. They can sell the home, or pay off the loan and keep it.

Myth: It is only for people who are out of money.

Fact: Many homeowners use it as a planning tool for retirement income, long-term care and tax planning.

Myth: I can be forced out of my home.

Fact: You can stay as long as you live there as your main home, keep up with taxes and insurance, and maintain the property.

Myth: I could owe more than my home is worth.

Fact: A HECM is a non-recourse loan. FHA insurance covers any shortfall.

Reverse Mortgage Questions, Answered

How much equity do I need?

You need substantial equity in your home. How much you can borrow depends on the age of the youngest borrower, your home's appraised value and current interest rates.

Can I sell my home later?

Yes. You can sell at any time. The loan is repaid from the sale, and you keep any money left over.

Is there a minimum credit score?

There is no set credit score or income minimum. Instead, a financial assessment checks that you can cover taxes, insurance and upkeep.

Who can qualify?

At least one borrower must be 62 or older, and the home must be your primary residence. You will also complete counseling with a HUD-approved counselor before closing.

What happens to the loan when I pass away?

Your heirs can sell the home, pay off the loan and keep it, or sign the home over to the lender. They are not responsible for more than the home is worth.

What does a reverse mortgage cost?

Like most mortgages, there are closing costs and FHA mortgage insurance. Jeff will give you a clear written estimate so you can see the numbers before you decide.

Could You Qualify?

• At least one borrower is 62 or older
• The home is your primary residence
• The property is an eligible home type
• You have no delinquent federal debt
• You have significant equity in the home
• You complete HUD-approved counseling before closing

This material is not from HUD or FHA and has not been approved by a government agency. HUD-approved counseling is required, and the youngest borrower must be at least 62. Monthly advances may affect eligibility for other programs. This is not a loan offer. Not all applicants qualify, and rates and programs may change. All products are subject to credit and property approval.