North Carolina Reverse Mortgages
Are you a North Carolinian in search Reverse Mortgage information? Alpha Mortgage’s Reverse Division is a trusted source for North Carolina seniors who want to supplement their cash flow through a reverse mortgage loan. From the coastal Cape Fear region, to the rolling foothills of the Piedmont to the mountain cities of Asheville and Boone and everywhere in between, we proudly serve all of North Carolina when it comes to reverse mortgages.
At Alpha Mortgage, we can help senior homeowners improve the quality of life for their retirement years by guiding them through the process of a North Carolina reverse mortgage. Whether you’re ready to retire and just need a little more money coming in each month, or you want to use the funds to pay off your other debts, a Reverse Mortgage could be for you.
What is a Reverse Mortgage?
A Reverse Mortgage (or HECM Loan) is a special type of home financing in which the loan amortizes backwards, or in reverse. Instead of the homeowner making payments to their lender every month, the lender actually pays the homeowner. Over time, the balance of the loan increases, unlike with a typical mortgage, where the homeowner makes payments and the balance decreases. The amount of interest can also increase over time with a reverse mortgage, which is why reverse mortgages are often considered a more expensive type of loan. However, there are ways to avoid paying compound interest with a reverse mortgage.
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How is the Loan Paid Off?
The reverse mortgage does not have to be paid off until the last surviving homeowner on the loan no longer lives in the home. If the last surviving homeowner on the loan dies or moves away, the loan will need to be repaid. Often times, the homeowner (or his/her heirs or estate) will use the money from the sale of the home to pay off the reverse mortgage.
How Does the Homeowner Receive Funds?
The homeowner can choose to receive reverse mortgage proceeds in monthly installments, a lump sum, on a monthly basis for a specific number of years, on a monthly basis for life (Tenure Payment), or a combination of any of these options.
What are the Qualification Requirements?
In order to qualify for a Reverse Mortgage, the homeowner must meet the following guidelines:
- Must be 62 years of age or older.
- Owns the home outright, or has a decent amount of equity built up in the home.
- Cannot be delinquent on any federal debt, such as owing back taxes.
- Property must be used as a primary residence.
- Borrower must agree to participate in a homeownership counseling program offered by a HUD-approved HECM counselor.
To learn more about North Carolina Reverse Mortgages, contact the Reverse Loan specialists at Alpha Mortgage today.
Please note that the information on this page may vary from when it was originally published. Please consult with a licensed reverse mortgage professional for the most up-to-date information.