Eligibility and Home Ownership: You must own your home outright or have a substantial amount of equity.

Loan Disbursement: After approval, you receive payments either as a lump sum, monthly installments, a line of credit, or a combination.

No Monthly Payments: You don’t make monthly mortgage payments. Instead, the loan balance, including interest and fees, accumulates over time.

Repayment: When the last borrower leaves the home, the loan is repaid from the sale proceeds. If the home sells for more than the loan amount, the excess goes to you or your heirs.

Non-Recourse Loan: You or your heirs will never owe more than the home’s market value at repayment, protecting other assets.

Your age (older borrowers can access more)

The current market value of your home

Interest rates

Type of reverse mortgage chosen

Age Requirement: The primary borrower must be at least 55 years old. This age limit aligns with the retirement phase for many homeowners and reflects the loan’s purpose as a retirement financial tool.

Primary Residence: The property must be your primary residence located in Midland. Secondary or investment properties typically do not qualify.

Home Ownership and Equity: You must own the home outright or have significant equity. Some reverse mortgages require no existing mortgage, while others allow you to pay off your current mortgage with the reverse mortgage proceeds.

Property Type: Eligible properties usually include single-family homes, townhouses, and certain condominiums. Some manufactured homes may qualify, depending on the lender’s criteria.

Financial Assessment: Lenders will assess your ability to maintain property taxes, insurance, and upkeep costs. This ensures you can continue living in your home safely without financial strain.

Counseling Session: A mandatory counseling session with a government-approved advisor is part of the process. This step ensures you fully comprehend the loan’s terms and implications before proceeding.

No Monthly Mortgage Payments: Unlike conventional loans, reverse mortgages require no monthly repayments, easing your monthly cash flow.

Loan Proceeds Flexibility: You can choose how to receive the loan amount—lump sum, monthly payments, line of credit, or a mix, adapting to your financial goals.

Non-Recourse Loan: The repayment amount cannot exceed your home’s value at loan maturity, protecting your estate and heirs.

Interest and Fees Added to Loan Balance: Instead of monthly payments, interest accrues and adds to the loan balance over time.

Stay in Your Home: As long as you live in the home, pay property taxes, and maintain insurance, you can stay indefinitely.

Loan Amount Depends on Several Factors: The amount available varies based on your age, home value, interest rates, and lender-specific conditions.

Tax-Free Funds: The money you receive from a reverse mortgage is generally tax-free and won’t affect government benefits like Old Age Security.

Loan Discharge Flexibility: The loan is typically repaid when you sell, move out, or pass away, allowing you to use the funds while maintaining homeownership.

Mandatory Counseling: This ensures borrowers understand all loan aspects before committing.

Supplement Retirement Income: Access funds to support your lifestyle without monthly payments, easing financial pressures during retirement.

Home Improvement Funding: Use proceeds to renovate or maintain your home, enhancing comfort and potentially increasing property value.

Debt Consolidation: Pay off existing mortgages or high-interest debts to reduce monthly financial burdens.

Medical and Healthcare Expenses: Cover medical bills or care costs that arise without dipping into savings or other income sources.

Preserve Savings and Investments: Avoid liquidating retirement accounts, allowing investments to continue growing.

Stay in Your Home: Enjoy your home for as long as you wish while accessing its equity.

Flexible Access to Funds: Choose how and when you receive funds based on your personal needs.

No Impact on Government Benefits: Funds received generally do not reduce eligibility for programs like Old Age Security or the Guaranteed Income Supplement.

Non-Recourse Loan Limits Risk: Protect your estate by ensuring repayment cannot exceed your home’s value.

Loan Costs and Fees: Reverse mortgages can involve upfront fees, closing costs, and ongoing interest that accumulates over time. Understanding these is critical.

Effect on Estate and Inheritance: Since repayment comes from the home’s sale proceeds, the remaining equity for heirs could be reduced.

Impact of Moving: Moving out permanently typically triggers loan repayment, so consider your long-term housing plans.

Property Taxes and Insurance: You remain responsible for taxes, insurance, and maintenance. Failure to meet these obligations could lead to loan default.

Loan Amount Limits: The loan amount is limited by age, home value, and interest rates, possibly restricting access to the full equity amount.

Interest Rate Fluctuations: Variable interest rates can increase the loan balance faster, so fixed-rate options might be preferable for some.

Loan Maturity Conditions: The loan must be repaid upon sale, permanent move, or death, which can have implications for estate planning.

Mandatory Counseling: This helps ensure you fully grasp the responsibilities and risks involved.

Alternatives Available: Evaluate other financial options to ensure a reverse mortgage is the most suitable for your situation.

Initial Inquiry: Contact a reverse mortgage specialist like Trillium Mortgage to discuss your needs and options.

Pre-Qualification: Preliminary checks on your age, home ownership, and equity determine initial eligibility.

Counseling Session: Complete a government-approved counseling session to understand all aspects of the loan.

Application Submission: Submit detailed information about your property, finances, and identity.

Home Appraisal: An independent appraisal determines the current market value of your home.

Loan Offer and Disclosure: Receive loan terms, including amounts, fees, and conditions.

Review and Acceptance: Take time to review the offer carefully before signing the agreement.

Loan Disbursement: Funds are provided as per your chosen payment method.

Ongoing Compliance: Maintain your home, taxes, and insurance throughout the loan period.