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Overview of Reverse Mortgages

Check out this video from NBC's Today show that gives a great overview of how the Reverse Mortgage works. Just Click Here

Check out this video from NBC's Today show that gives a great overview of how the Reverse Mortgage works. Just Click Here

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Reverse Mortgage

No Monthly Payment

No credit or income requirment

No effect on SSI or Medicare

You own your home

Loan proceeds are TAX-FREE

 

 
 

Call a PRMI loan officer "today" for a no-obligation reverse mortgage evaluation 501-225-5626           

 What is a Home Equity Conversion Mortgage (HECM)?

Home Equity Conversion Mortgages (HECM) allow seniors to convert the equity in their home into cash. A HECM is a of Federal Housing Administration (FHA) insured reverse mortgage. The amount that may be borrowed is based on the appraised value of the home (subject to FHA limits), and the age (minimum age requirement of 62 years) for the youngest borrower.   

Eligibility requirments for a Reverse Mortgage

There are borrower and property eligibility requirements that must be met. You can use the calculator to the right to see if you qualify. Please contact a PRMI loan officer at (501) 225-5646 for additional information.

  • All homeowners must be 62 years of age or older
  • Own your home outright or have sufficient equity
  • Occupy the property as your principal residence

  • Not be delinquent on any federal debt or have substantial liens on your home
  • Participate in a consumer information session given by a HUD approved HECM counselor

Common Misconceptions about Reverse Mortgages (HECM) 

Q: With a reverse mortgage, borrowers give up the title/ownership to their home.
False: You retain ownership of your home

Q: When I no longer occupy the home, the lender takes the house.
False: When the borrower(s) can no longer occupy the property as their primary residence for at least 12 months or the last remaining homeowner passes away, the reverse mortgage will become due. The property will go to your heirs or beneficiaries who may sell or refinance the property to repay the reverse mortgage. Any remaining equity proceeds from the sale are paid to your heirs or beneficiaries.

Q: My estate/heirs will have to make up the difference if my home sells for less then what I own on my loan.   False: A reverse mortgage is a “Non-Recourse” loan. Your estate/heirs will NEVER owe more than the home is worth.

Q: You need good credit for a reverse mortgage.   False: A reverse mortgage is based on your age and your home’s equity. Income, credit and health are not qualifying factors.

Q: My Social Security and Medicare Benefits will be affected.    False:  A reverse mortgage does NOT affect “non-means-tested” government benefits such as Medicare and Social Security.

Q: You have to pay taxes on the proceeds from a reverse mortgage.  False: The proceeds from a reverse mortgage are NOT considered income and are NOT TAXABLE.

Depending on the Reverse Mortgage (HECM) program you select, you can choose how you want to withdraw your funds

  • Lump Sum- A single payment to you at closing
  • Credit Line- Permits you to control the timing and amount of the loan advances 
  • Tenure- You can receive fixed monthly payments as long as you live in your home

  • Term- You can receive fixed monthly payments for a speific term of months
  • OR a combinaton of the above

On-going requirements for your Reverse Mortgage (HECM) loan

 
  • Continue to maintain and keep current your home insurance policy
  • Continue your normal maintenance and repairs to your home 
  • Continue to pay and keep current your realo estate taxes

 Reverse Mortgage (HECM) vs. Traditional Mortgage

 

A Reverse Mortgage (HECM) loan pays you. You qualify regardless of your income or credit score. With a Reverse Mortgage there are No Monthly Mortgage Payments. The only financial requirement of the loan is that you keep active your homeowners insurance policy and payment of your annual property taxes and normal home maintenance

A Reverse Mortgage is not for everyone

 
There are many factors to consider before deciding whether a Reverse Mortgage (HECM) is right for you. Please contact a PRMI reverse mortgage loan officer for a no-obligation evaluation. It’s very important that you have all the facts concerning reverse mortgages. To assist you in this process you will talk with (in-person or by phone) an FHA approved HECM counselor to discuss program eligibility requirements, financial implications and alternatives to obtaining a reverse mortgage. Additionally they will discuss provisions for the mortgage becoming due. Upon the completion of HECM counseling, you should be able to make an independent, informed decision whether this product will meet your specific needs. Your PRMI loan officer will provide you with information on how to contact an approved HECM counselor.

 

Contact us concerning the “FHA Reverse Purchase” program approved by The Housing Economic and Recovery Act of 2008.

The ruling allows seniors the opportunity to use a Reverse Purchase Mortgage to move from their larger “empty nest” homes into homes more suitable and affordable for a senior’s lifestyle. The program was designed to allow seniors to purchase a new principal residence and obtain a reverse mortgage within a single transaction. The program was also designed to enable senior homeowners to relocate to other geographical areas to be closer to family members or downsize to homes that meet their physical needs, i.e., handrails, one level properties, ramps, wider doorways, etc.

An example;

Mr. Smith a 72-year-young senior was “downsizing” and wanted to purchase a smaller home (closer to his grandchildren); he needs a smaller yard and a home with little or no maintenance. He may find it difficult to qualify for a traditional mortgage because of his limited income or credit requirements. He owns his current home, and didn’t want to use all of his proceeds from the sale of his home ($300,000) to buy his new home

Mr. Smith has an option available to him…a Reverse Purchase (HECM) loan;

Mr. Smith wants to purchase a $300,000 home; he could put approximately $120,000 (40%)down from either the sale of his previous home or other assets and secures a Reverse Purchase (HECM) loan from PRMI for the balance due for $180,000 (60%), plus closing costs. No monthly payments are required and the loan does not become due until the home is no longer Mr. Smith's permanent residence. Because Mr. Smith did not have to use all of his proceeds from the sale of his previous home, he will have a "New Home" and approximately $180,000 in available cash.

 

Why (PRMI) Primary Residential Mortgage?

Our PRMI loan officers live and work in Arkansas, we are your neighbors. PRMI is the 11th largest FHA lender in the United States with 200 PRMI branches in 49 states. We work with Arkansas residents every day. We invite you to visit our office, located in Little Rock at 11715 Rainwood Road or one of our loan officers would be happy to meet with you at your home at a time convenient for you.

CALL US TODAY 501-225-5626

 

 

 

 

 

 

 

 

 

Reverse Mortgage

No Monthly Payment

No credit or income requirment

No effect on SSI or Medicare

You own your home

Loan proceeds are TAX-FREE

 

 
 

Call a PRMI loan officer "today" for a no-obligation reverse mortgage evaluation 501-225-5626           

 What is a Home Equity Conversion Mortgage (HECM)?

Home Equity Conversion Mortgages (HECM) allow seniors to convert the equity in their home into cash. A HECM is a of Federal Housing Administration (FHA) insured reverse mortgage. The amount that may be borrowed is based on the appraised value of the home (subject to FHA limits), and the age (minimum age requirement of 62 years) for the youngest borrower.   

Eligibility requirments for a Reverse Mortgage

There are borrower and property eligibility requirements that must be met. You can use the calculator to the right to see if you qualify. Please contact a PRMI loan officer at (501) 225-5646 for additional information.

  • All homeowners must be 62 years of age or older
  • Own your home outright or have sufficient equity
  • Occupy the property as your principal residence

  • Not be delinquent on any federal debt or have substantial liens on your home
  • Participate in a consumer information session given by a HUD approved HECM counselor

Common Misconceptions about Reverse Mortgages (HECM) 

Q: With a reverse mortgage, borrowers give up the title/ownership to their home.
False: You retain ownership of your home

Q: When I no longer occupy the home, the lender takes the house.
False: When the borrower(s) can no longer occupy the property as their primary residence for at least 12 months or the last remaining homeowner passes away, the reverse mortgage will become due. The property will go to your heirs or beneficiaries who may sell or refinance the property to repay the reverse mortgage. Any remaining equity proceeds from the sale are paid to your heirs or beneficiaries.

Q: My estate/heirs will have to make up the difference if my home sells for less then what I own on my loan.   False: A reverse mortgage is a “Non-Recourse” loan. Your estate/heirs will NEVER owe more than the home is worth.

Q: You need good credit for a reverse mortgage.   False: A reverse mortgage is based on your age and your home’s equity. Income, credit and health are not qualifying factors.

Q: My Social Security and Medicare Benefits will be affected.    False:  A reverse mortgage does NOT affect “non-means-tested” government benefits such as Medicare and Social Security.

Q: You have to pay taxes on the proceeds from a reverse mortgage.  False: The proceeds from a reverse mortgage are NOT considered income and are NOT TAXABLE.

Depending on the Reverse Mortgage (HECM) program you select, you can choose how you want to withdraw your funds

  • Lump Sum- A single payment to you at closing
  • Credit Line- Permits you to control the timing and amount of the loan advances 
  • Tenure- You can receive fixed monthly payments as long as you live in your home

  • Term- You can receive fixed monthly payments for a speific term of months
  • OR a combinaton of the above

On-going requirements for your Reverse Mortgage (HECM) loan

 
  • Continue to maintain and keep current your home insurance policy
  • Continue your normal maintenance and repairs to your home 
  • Continue to pay and keep current your realo estate taxes

 Reverse Mortgage (HECM) vs. Traditional Mortgage

 

A Reverse Mortgage (HECM) loan pays you. You qualify regardless of your income or credit score. With a Reverse Mortgage there are No Monthly Mortgage Payments. The only financial requirement of the loan is that you keep active your homeowners insurance policy and payment of your annual property taxes and normal home maintenance

A Reverse Mortgage is not for everyone

 
There are many factors to consider before deciding whether a Reverse Mortgage (HECM) is right for you. Please contact a PRMI reverse mortgage loan officer for a no-obligation evaluation. It’s very important that you have all the facts concerning reverse mortgages. To assist you in this process you will talk with (in-person or by phone) an FHA approved HECM counselor to discuss program eligibility requirements, financial implications and alternatives to obtaining a reverse mortgage. Additionally they will discuss provisions for the mortgage becoming due. Upon the completion of HECM counseling, you should be able to make an independent, informed decision whether this product will meet your specific needs. Your PRMI loan officer will provide you with information on how to contact an approved HECM counselor.

 

Contact us concerning the “FHA Reverse Purchase” program approved by The Housing Economic and Recovery Act of 2008.

The ruling allows seniors the opportunity to use a Reverse Purchase Mortgage to move from their larger “empty nest” homes into homes more suitable and affordable for a senior’s lifestyle. The program was designed to allow seniors to purchase a new principal residence and obtain a reverse mortgage within a single transaction. The program was also designed to enable senior homeowners to relocate to other geographical areas to be closer to family members or downsize to homes that meet their physical needs, i.e., handrails, one level properties, ramps, wider doorways, etc.

An example;

Mr. Smith a 72-year-young senior was “downsizing” and wanted to purchase a smaller home (closer to his grandchildren); he needs a smaller yard and a home with little or no maintenance. He may find it difficult to qualify for a traditional mortgage because of his limited income or credit requirements. He owns his current home, and didn’t want to use all of his proceeds from the sale of his home ($300,000) to buy his new home

Mr. Smith has an option available to him…a Reverse Purchase (HECM) loan;

Mr. Smith wants to purchase a $300,000 home; he could put approximately $120,000 (40%)down from either the sale of his previous home or other assets and secures a Reverse Purchase (HECM) loan from PRMI for the balance due for $180,000 (60%), plus closing costs. No monthly payments are required and the loan does not become due until the home is no longer Mr. Smith's permanent residence. Because Mr. Smith did not have to use all of his proceeds from the sale of his previous home, he will have a "New Home" and approximately $180,000 in available cash.

 

Why (PRMI) Primary Residential Mortgage?

Our PRMI loan officers live and work in Arkansas, we are your neighbors. PRMI is the 11th largest FHA lender in the United States with 200 PRMI branches in 49 states. We work with Arkansas residents every day. We invite you to visit our office, located in Little Rock at 11715 Rainwood Road or one of our loan officers would be happy to meet with you at your home at a time convenient for you.

CALL US TODAY 501-225-5626

 

 

 

 

 

Find out more about this government insured program. Its simple and totally FREE. Just fill out this form to get started

Find out more about this government insured program. Its simple and totally FREE. Just fill out this form to get started

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Arkansas Reverse Mortgage Calculator



PRMI NMLS No. 3094. Branch NMLS 1161933. PRMI is an Equal Housing Lender. Some products and services may not be available in all states. Credit and collateral are subject to approval. Terms and conditions apply. This is not a commitment to lend. Programs, rates, terms and conditions are subject to change without notice. The content in this marketing advertisement has not been approved, reviewed, sponsored or endorsed by any department or government agency. Rates are subject to change and are subject to borrower(s) qualification. This office is licensed and examined by the Office of Consumer Credit Commissioner of the State of Texas. Alabama Banking Department Bureau of Banking MC 20316. Arkansas Securities Department 11558. Florida Office of Financial Regulation MLD646. Department of Banking and Finance 6521. Office of Financial Institutions #771. Missouri Division of Finance. Mississippi Department of Banking and Consumer Finance, 3094. Oklahoma Department of Consumer Credit ML010027. Department of Financial Institutions 109282. Your opinion is greatly appreciated, we thank you for visiting this website or Primary Residential Mortgage, Inc. If you have specific questions, comments, concerns or complaints we invite you to contact us by the email shown here: ConsumerVoice@primeres.com. Emails received during business hours, should receive a response within 48 hours, excluding weekends or holidays. Primary Residential Mortgage, Inc. is licensed under the laws of the State of Texas and by state law is subject to regulatory oversight by the Texas Department of Banking. Any consumer wishing to file a complaint against Primary Residential Mortgage, Inc. should contact the Texas Department of Banking through one of the means indicated below: In Person or U.S. Mail: 2601 North Lamar Boulevard, Suite 300, Austin, Texas 78705-4294, Telephone No.: (877) 276-5554, Fax No.: (512) 475-1313, email [E-mail]: consumer.complaints@dob.texas.gov, Website: www.dob.texas.gov."
PRMI NMLS No. 3094. Branch NMLS 1161933. PRMI is an Equal Housing Lender. Some products and services may not be available in all states. Credit and collateral are subject to approval. Terms and conditions apply. This is not a commitment to lend. Programs, rates, terms and conditions are subject to change without notice. The content in this marketing advertisement has not been approved, reviewed, sponsored or endorsed by any department or government agency. Rates are subject to change and are subject to borrower(s) qualification. This office is licensed and examined by the Office of Consumer Credit Commissioner of the State of Texas. Alabama Banking Department Bureau of Banking MC 20316. Arkansas Securities Department 11558. Florida Office of Financial Regulation MLD646. Department of Banking and Finance 6521. Office of Financial Institutions #771. Missouri Division of Finance. Mississippi Department of Banking and Consumer Finance, 3094. Oklahoma Department of Consumer Credit ML010027. Department of Financial Institutions 109282. Your opinion is greatly appreciated, we thank you for visiting this website or Primary Residential Mortgage, Inc. If you have specific questions, comments, concerns or complaints we invite you to contact us by the email shown here: ConsumerVoice@primeres.com. Emails received during business hours, should receive a response within 48 hours, excluding weekends or holidays. Primary Residential Mortgage, Inc. is licensed under the laws of the State of Texas and by state law is subject to regulatory oversight by the Texas Department of Banking. Any consumer wishing to file a complaint against Primary Residential Mortgage, Inc. should contact the Texas Department of Banking through one of the means indicated below: In Person or U.S. Mail: 2601 North Lamar Boulevard, Suite 300, Austin, Texas 78705-4294, Telephone No.: (877) 276-5554, Fax No.: (512) 475-1313, email [E-mail]: consumer.complaints@dob.texas.gov, Website: www.dob.texas.gov."