Q: What are the eligibility requirements for a HomeSecure Mortgage loan?
A. You, and any other current owners of your home, must be age 62 or older. The home must be your primary residence. It may be either a single-family residence in a 1- to 4-unit dwelling, a condominium, or part of a planned unit development (PUD). Though some manufactured housing is eligible, most cooperatives and most mobile homes are not. Finally, you must agree to discuss the program with a counselor from on approved counseling agency.

* Note: If the house does not satisfy HUD's requirements, you may use the HomeSecure Mortgage loan to pay for repairs that may be required to meet HUD standards.

Q: Do I need to make any ongoing payments?
A: No. Unlike traditional mortgages or home equity lines of credit, you do not need to make any ongoing payments.

Q: What Types of Loans Are Available?
Most of our loans are Home Equity Conversion Mortgages (HECM). We just announced a new lower margin HECM loan that allows borrowers to access more equity at a lower cost over the long term.

For seniors with high-value homes, we have our jumbo loan. This provides borrowers with more cash than the typical HECM account, which adheres to county lending limits.

Q: How can I use the money?
The money from your HomeSecure Mortgage can be used for any purpose, from making ends meet to living your retirement dreams.

• Living expenses
• Travel
• Buying a new car
• Paying off debts, including credit cards
• Health care or long-term care
• Education-keep learning for life!
• Home repairs and remodeling
• Hobbies
• Starting a part-time business
• Easing the financial burden on your children

Q: Will I lose my home?
You're still the homeowner, and you can stay in your home for as long as you wish. In effect, you're being paid to live at home. The program is regulated and insured by the Federal Housing Administration. By law, you can't be forced to sell or move. You won't lose the title to your home. No payments are due on the reverse mortgage until you no longer live in the home.

Q: If no monthly payments are required, how is my HomeSecure Mortgage paid back?
Your loan is paid back when you move out of your home, sell it, or all people on the title have passed away. You must repay the money that you have received plus accumulated interest and service fees (when applicable) up to the appraised market value of the home.  The repayment is generally due within 6 months of the maturity event.

Q: What if I want to leave our home to the kids?
It's your home. You can still leave it to your children, or to anyone you choose. Your heirs can pay off the loan any number of ways, such as the following:

• Sell the house;
• Refinance the debt; or
• Use other funds to pay off the reverse mortgage.

Q: What happens to the house when I pass away?
A: If your spouse is also listed on your home’s title, he/she will be able to continue residing in the home and receiving the benefits of a HomeSecure Mortgage. If you do not have a surviving spouse, all equity remaining in the house will pass to your heirs. Your heirs can choose to sell the house, pay back the Reverse Mortgage, or apply for a traditional mortgage to finance the outstanding balance. In that situation, the lender will work with your heirs to help them decide how to proceed.

Q: What do the experts say about this program?
Many financial counselors, senior advocates and published reports suggest that a reverse mortgage can be a smart way to secure your financial future during retirement.

Q: Are there any costs?
Under our HomeSecure Mortgage programs, you will pay an origination fee, a mortgagee insurance fee and actual closing costs, including charges by the title and/or escrow companies.  All of these costs as part of the loan process.  It is also customary for the lender to collect a deposit for the appraisal at the time of application.

Q: When Is a HomeSecure Mortgage NOT A smart decision?
A: If you are considering moving out of your home in the near future, a home equity conversion plan may not be your best option. If you can see yourself wanting to leave your home in the near future, it is best to work with your family, friends, or financial advisor to determine the best course of action.

Q: What are the interest rates on this product?
A: Your interest rate will depend on the specific product you select. Most HomeSecure Mortgage rates are all adjustable, changing either monthly or annually, based on the current rate of the one-year Treasury bill, one-month certificate of deposit, or the six-month LIBOR indices (depending on the product you select). However we do also offer a Fixed Rate Product.

Q: Will I have to pay any taxes?
In general, the IRS does not consider proceeds from a HomeSecure Mortgage to be taxable income. You are still responsible for property taxes, homeowner's insurance, and for all home upkeep and maintenance. Please consult a tax professional.

Q: Is it possible to get a HomeSecure Mortgage if there is already an existing mortgage on the home?
Yes, but any existing mortgage must be paid off when the reverse mortgage closes. Funds from the reverse mortgage can be used for that purpose.

Q: Does a home in a living trust qualify for a HomeSecure Mortgage?
In most cases, the answer is yes. As a part of the loan process, you will need to provide a copy of the trust or a Certification of trust for review by the lender and title company.

Q: Can the interest charged on loan principal be deducted for tax purposes?
The interest accrues on your loan is generally deductible when the loan is repaid, which occurs when the last borrower permanently leaves the property.  Consult your tax advisor for more information.

Q: Can I owe more than my home is worth?
A HomeSecure Mortgage is a “non-recourse” loan, which means that you, your heirs, or your estate cannot be required to repay more than the appraised market value of the home at the maturity of the loan.  If the loan balance exceeds the value of the home, you, your heirs, or your estate will only be obligated to repay an amount up to the current appraised value of the property.

Q: Does the lender take the title of the home?
A HomeSecure Mortgage is only a lien against the property; therefore, the title will stay in the borrowers name.