Reverse mortgages are a popular financing option for seniors in Idaho that allow homeowners to tap into their home’s equity, among other things.
How Does a Reverse Mortgage Work?
If you’re 62 or older, a reverse mortgage loan can help you access a portion of the equity in your home without the burden of monthly mortgage payments, as long as you take care of property charges such as insurance, taxes and maintenance.
This makes reverse mortgages an attractive option for seniors in Idaho who want to maintain ownership of their homes while increasing their liquidity.
Reverse mortgages are only available to homeowners who are 62 or older and who either own their home outright or have a low mortgage balance that can be paid off at closing with the proceeds from the reverse mortgage loan.
How Popular Are Reverse Mortgages in Idaho?
- Reverse Mortgages (Past 12 Months)
- 1304
- Average Home Value
- $429,606
Our Reverse Mortgage Loans in Idaho
HECM
The Home Equity Conversion Mortgage (HECM) is the most common type of reverse mortgage. A HECM allows homeowners who are 62 or older to convert a portion of their home’s equity into cash, which can be received in a lump sum, line of credit, monthly payments or a combination of options.
HECM for Purchase (H4P)
H4Ps enable borrowers to use a reverse mortgage to purchase a new primary residence. This can be a useful option for seniors who want to downsize, rightsize, move closer to family or relocate to an area that is more expensive than where they currently live.
An H4P can greatly increase homebuying power, sometimes up to 200%, without draining the nest egg for a home purchase. Like a traditional HECM, the borrower does not have to make monthly mortgage payments. Instead, they simply have to take care of property charges like taxes, insurance and upkeep.
Jumbo Reverse Mortgage Loans
Jumbo reverse mortgage loans enable borrowers to access more equity on a high-value property. The home value limit you can borrow against with a jumbo reverse mortgage is higher than the current limit of $1,089,300 that you would face with a traditional HECM reverse mortgage.
Benefits of Getting a Reverse Mortgage in Idaho
Access To Cash
A reverse mortgage loan allows borrowers to access a portion of their home equity in the form of cash, which can be used to cover expenses, pay off debt or supplement retirement cash flow. As this money is considered loan proceeds, it’s tax-free.*
No Monthly Mortgage Payments
With a reverse mortgage, borrowers are not required to make monthly mortgage payments. Instead, they must pay property charges, like insurance, taxes and home upkeep. The loan is a non-recourse loan, meaning neither the borrowers nor the heirs will owe more than the home is worth when it’s sold.**
Flexibility
Borrowers have flexibility in how they receive their funds, with options including a lump sum payment, monthly payments, a line of credit or a combination of these.
Long-term Care
Many people utilize a reverse mortgage to provide funds to pay for expenses related to care. For example, if a homeowner needs to hire an in-home caregiver or pay for assisted living or nursing home care, they may be able to use the funds from a reverse mortgage to cover these costs. This can be particularly helpful for seniors who want to age in place and receive care at home rather than moving to a nursing home or assisted living facility.
Portfolio Hedging
Reverse mortgages can provide a hedge against market downturns. If your investment portfolio experiences losses, you can use the funds from your reverse mortgage to cover expenses instead of selling off investments at a loss.*
Realize Home Equity Gains
Home equity hit all-time highs recently, yet many people don’t reap the rewards of gains in the housing market until they sell their homes. With a reverse mortgage, you can stay in your home and benefit from its appreciation.
Stay in the Home
Reverse mortgage borrowers can continue to live in their homes and maintain ownership as long as they comply with the loan terms.
Government-insured
HECM reverse mortgage loans are insured by the Federal Housing Administration (FHA), which offers additional consumer protections and can help borrowers access more funds than they might otherwise qualify for.
Interested in a Reverse Mortgage Loan in Idaho?
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**This advertisement does not constitute tax or financial advice. Please consult a tax and/or financial advisor regarding your specific situation.**There are some circumstances that will cause the loan to mature and the balance to become due and payable. Borrower is still responsible for paying property taxes and insurance and maintaining the home. Credit subject to age, property and some limited debt qualifications. Program rates, fees, terms and conditions are not available in all states and subject to change.