Professional Mortgage Alliance (PMA) is a reverse mortgage company whose foundation is based on the education created by its sister company, the American C.E. Institute (ACEI).
Together, PMA’s and ACEI’s ultimate goal is to educate consumers and financial professionals that today’s reverse mortgage is not just a needs based product of last resort, but should be considered as a viable option, in an overall and more comprehensive retirement plan.
A reverse mortgage is a loan that enables senior homeowners, age 62 and older, to convert part of their home equity into tax-free income, without having to sell their home, give up title to it, or make monthly principal and interest payments. The loan becomes due when the last borrower (s) permanently leaves the home.
When none of the borrowers are remaining in the home, the loan is due, or you may choose to pay off the loan early. The family or heirs can sell the house or refinance the mortgage as is the case with any other mortgage. Today's FHA insured reverse mortgage offers protections and safeguards for seniors like never before.
Your options include:
Yes, your present income can affect your ability to secure a Reverse Mortgage. Although you will no longer be obligated to a monthly principal & interest payment on your home the lender wants to verify your other monthly obligations, including but not limited to, property taxes and homeowner’s insurance.
No, your benefits will not be affected by the reverse mortgage proceeds.
What About SSI and Medicaid?
Yes, these government programs can be negatively affected by securing a reverse mortgage. If you are receiving benefits from these sources it is PMA’s position to refer you to an elder law attorney or Medicaid expert before applying for a reverse mortgage.
They are very safe. You or your heirs retain ALL ownership rights, continue and it is impossible to fall behind on monthly principal and interest payments because there are none to make. Reverse Mortgages are “non- recourse” mortgages, which means the debt CANNOT be passed to your heirs or estate.