for homeowners
Reverse Mortgages
At Rhode Island Housing, we appreciate how important it is for seniors to make the right decisions about using the equity in their homes. Since 1988, our reverse mortgages have been a safe option to consider as they allow seniors to keep their homes while borrowing against the equity.
Understanding a Reverse Mortgage
A reverse mortgage is a loan that enables senior homeowners to tap into the equity in their home and use it as a source of tax-free income. The loan can be used to help pay for anything you want – from everyday expenses and utility bills to home repairs.
Unlike traditional home-equity loans, there are no monthly payments. You do not have to repay the loan as long as you own and occupy the home as your principal residence. When the home is sold or inherited, the money you borrowed, plus the interest and fees, will be due. Generally, borrowers or their estate repay the loan by selling the home. With a Rhode Island Housing reverse mortgage, if the home is sold, you or your estate may keep the proceeds in excess of the amount due and are not responsible for any shortages. The amount you are eligible to borrow depends on your age, the interest rate and the amount of equity in your home. The equity is based on an appraisal, or the maximum claim amount, whichever is less. The maximum claim amount is currently $316,350.
Making a Safe, Informed Decision
Reverse mortgages continue to grow in popularity among seniors, but they are not right for everyone.
If you’re age 62 or older and own your home, Rhode Island Housing can help you decide whether a reverse mortgage is right for you, or if another option may better suit you. We can help you sort through all the information and make a safe, informed decision. To speak to someone for more information about whether a reverse mortgage is right for you, call 401 457-1344.
Flexible Terms and Fully Insured
If you decide a reverse mortgage is right for you, Rhode Island Housing has a line of offerings you can feel confident in. Because our reverse mortgages are fully insured, you are protected from acquiring negative equity in your home. We offer low closing costs, as well as the opportunity to incorporate closing costs and fees into your loan, instead of paying them out of pocket.
Rhode Island Housing offers several disbursement options:
• Line of credit – allows you to withdraw funds as needed
• Lump sum – one time disbursement of funds
• Tenure plan – monthly payments made to you for the rest of your life
• Term plan – monthly payments made to you for a set period of time
• Combination – option to combine line of credit with monthly payment
Qualifying for a Reverse Mortgage
• You must be at least 62 years of age.
• If there is more than one borrower, all borrowers must be age 62 or older. • Your annual household income may not exceed $88,950, depending on household size.
• You must own and occupy the house as your principal residence.
• Only owner-occupied, multi-family properties (ranging from 1-4 families) are eligible.
For more information about our Reverse Mortgages, contact us at401 450-1344 or loaninfo@rhodeislandhousing.org.
You also may want to visit the American Association of Retired Persons’ (AARP) website, which includes a free calculator that will estimate how much money you may qualify to receive: www.aarp.org/revmort.
At Rhode Island Housing, we appreciate how important it is for seniors to make the right decisions about using the equity in their homes. Since 1988, our reverse mortgages have been a safe option to consider as they allow seniors to keep their homes while borrowing against the equity.
Understanding a Reverse Mortgage
A reverse mortgage is a loan that enables senior homeowners to tap into the equity in their home and use it as a source of tax-free income. The loan can be used to help pay for anything you want – from everyday expenses and utility bills to home repairs.
Unlike traditional home-equity loans, there are no monthly payments. You do not have to repay the loan as long as you own and occupy the home as your principal residence. When the home is sold or inherited, the money you borrowed, plus the interest and fees, will be due. Generally, borrowers or their estate repay the loan by selling the home. With a Rhode Island Housing reverse mortgage, if the home is sold, you or your estate may keep the proceeds in excess of the amount due and are not responsible for any shortages. The amount you are eligible to borrow depends on your age, the interest rate and the amount of equity in your home. The equity is based on an appraisal, or the maximum claim amount, whichever is less. The maximum claim amount is currently $316,350.
Making a Safe, Informed Decision
Reverse mortgages continue to grow in popularity among seniors, but they are not right for everyone.
If you’re age 62 or older and own your home, Rhode Island Housing can help you decide whether a reverse mortgage is right for you, or if another option may better suit you. We can help you sort through all the information and make a safe, informed decision. To speak to someone for more information about whether a reverse mortgage is right for you, call 401 457-1344.
Flexible Terms and Fully Insured
If you decide a reverse mortgage is right for you, Rhode Island Housing has a line of offerings you can feel confident in. Because our reverse mortgages are fully insured, you are protected from acquiring negative equity in your home. We offer low closing costs, as well as the opportunity to incorporate closing costs and fees into your loan, instead of paying them out of pocket.
Rhode Island Housing offers several disbursement options:
• Line of credit – allows you to withdraw funds as needed
• Lump sum – one time disbursement of funds
• Tenure plan – monthly payments made to you for the rest of your life
• Term plan – monthly payments made to you for a set period of time
• Combination – option to combine line of credit with monthly payment
Qualifying for a Reverse Mortgage
• You must be at least 62 years of age.
• If there is more than one borrower, all borrowers must be age 62 or older. • Your annual household income may not exceed $88,950, depending on household size.
• You must own and occupy the house as your principal residence.
• Only owner-occupied, multi-family properties (ranging from 1-4 families) are eligible.
For more information about our Reverse Mortgages, contact us at401 450-1344 or loaninfo@rhodeislandhousing.org.
You also may want to visit the American Association of Retired Persons’ (AARP) website, which includes a free calculator that will estimate how much money you may qualify to receive: www.aarp.org/revmort.
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