Senior Lending Corporation knows that money management is more important than ever in retirement. You’ll want to do everything you can to secure your finances for your future and give yourself peace of mind. If you’re a homeowner, a reverse mortgage is an excellent way to keep your finances in shape with a new source of income.
As a local reverse mortgage company in Pennsylvania, we understand state laws and can help you choose the best lender.
What Is a Reverse Mortgage?
A reverse mortgage is aptly named — with this type of loan, your lender pays you money rather than the other way around. Based on your home’s equity, your lender will provide you with funds in monthly payments, a lump sum or a line of credit. You only have to pay them back once the home is no longer your primary residence. If you sell your home, move away or die, your loan repayment will be due.
Reverse mortgages give you more money to use for family trips, bills and anything else you need during your retirement years. There are two main kinds of reverse mortgages:
- Proprietary or jumbo reverse mortgage
- Home Equity Conversion Mortgages (HECMs)
Most likely, you’ll be looking at getting a HECM, the most common type of reverse mortgage. HECMs make up over 90% of the reverse mortgage market, and it’s what we focus on at Senior Lending. Still, our licensed advisors can give you advice on any kind of reverse mortgage loan and guide you through navigating them.
Pennsylvania Reverse Mortgage Requirements
To qualify for HECM loans in Pennsylvania, you must meet these requirements:
- Be at least 62 years old
- Use the home on loan as your primary residence
- Have sufficient equity in your home
- You must meet with a Department of Housing and Urban Development (HUD)-approved reverse mortgage counselor prior to applying for a reverse mortgage loan
Pennsylvania Reverse Mortgage FAQS
Find answers to commonly asked reverse mortgage questions below.
Are There Restrictions on How You Can Use the Money?
For most reverse mortgages, no. However, the loan requirements are different for public sector loans.
Does Pennsylvania Have a Formal Property Tax Deferral (PTD) Program?
Yes, most primary residences are eligible for the Pennsylvania Property Tax Relief program. The homeowner must be low-income and 65 or older, a widow over 50 or someone with disabilities over 18.
How Much Money Can I Get for My Home?
Your loan amount depends on many factors, including:
- Your age and the age of any other borrowers included on the loan.
- The appraised value of your home.
- Current interest rates.
In general, being older, having more equity in your home and having more of your mortgage paid off are all signs you’ll be able to get more money.
How Do I Apply for a HECM?
Before you apply for your reverse mortgage, federal law requires you to attend an approved counseling session, usuallly over the phone, to make you aware of your options from a third-party vendor. Then, speak with your lender about a consultation to start your application.
Let Senior Lending Corporation Be Your Reverse Mortgage Company
If you’re ready to apply for a HECM loan in Pennsylvania, make sure you have a reliable lender to partner with. Senior Lending Corporation boasts a team of accomplished licensed advisors ready to answer your questions and help you on your way to financial peace of mind. However you choose to use your new funds, we can help get you there.
Call Senior Lending Corporation today at 800-822-1190 so we can get you started with your reverse mortgage. You can also fill out our online contact form to connect with us.