Last Updated on August 15, 2018 by Eric Jeanette
What is a Reverse Mortgage?
Washington reverse mortgages enable older homeowners (62+) to convert part of the equity in their homes into tax free income without having to sell the home, give up title, or take on a new monthly mortgage payment. The reverse mortgage is appropriately named because the payment stream is reversed. Instead of making monthly payments to a lender, as with a regular mortgage, a lender makes payments to you. Below is some basic information about Washington reverse mortgages. Click to read the full explanation and details on reverse mortgages.
- You must be at least 62 years old.
- The home must be your primary residence.
- You must hold the title to the home.
- You must either have a small loan balance on the home now or own it with no mortgage.
- You must be capable of paying the taxes on it annually.
- You must not be delinquent on any federal debt.
- You must participate in a FREE and easy consumer counseling or information session held by an approved HECM counselor.
Does My Home Qualify?
Washington Reverse Mortgage property qualification types include the following:
- Single family homes
- 2-4 unit homes and you occupy at least one of them as your primary residence
- HUD approved condominiums or townhouses
- A manufactured home that was built after 1976
What are My Washington Reverse Mortgage Payment Plan Options?
You can choose to receive the money from a reverse mortgage all at once as a lump sum, fixed monthly payments either for a set term or for as long as you live in the home, as a line of credit, or a combination of these.
How Can I Use the Proceeds from a Reverse Mortgage?
The proceeds from a reverse mortgage can be used for anything, whether its to supplement retirement income to cover daily living expenses, repair or modify your home (i.e., widening halls or remodeling a bathroom), pay for health care, pay off existing debts, buy a new car or take a dream vacation, cover property taxes, and prevent foreclosure.
How Does the Interest Work on a Reverse Mortgage?
With a reverse mortgage, you are charged interest only on the proceeds that you receive.
Washington Reverse Mortgage Costs and Fees – click to read in detail about your costs and fees.
Washington Reverse Mortgage FAQ
Q: What If I Have An Existing Mortgage?
A: You may qualify for a reverse mortgage even if you still owe money on an existing mortgage.
Q: What Is the Service Fee Set-Aside?
A: The monthly servicing fee that ranges from $30-$35 to manage your account once the loan closes.
Q: Will I Lose My Government Assistance If I Get a Reverse Mortgage?
A: A reverse mortgage does not affect regular Social Security or Medicare benefits. However, if you are on Medicaid, any reverse mortgage proceeds that you receive must be used immediately.
Q: Why Do I Need to Get Counseling?
A: Counseling is one of the most important consumer protections built into the program. It requires an independent third party to make sure you understand the program, and review alternative options, before you apply for a reverse mortgage.
Q: When Do I Pay Back My Loan?
A: No monthly payments are due on a reverse mortgage while it is outstanding. The loan is repaid when you cease to occupy your home as a principal residence, whether you (the last remaining spouse, in cases of couples) pass away, sell the home, or permanently move out.
We are able to help you to find a reverse mortgage with the best reverse mortgage lenders in the following states: Alabama, Alaska, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, Florida, Georgia, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, South Dakota, Tennessee, Texas, Utah, Vermont, Virginia, Washington, West Virginia, Wisconsin, Wyoming.