HomeFund® Reverse Mortgages

What is our HomeFund® Reverse Mortgage?

Our HomeFund is a Reverse Mortgage which allows for you to use the Equity in your property for a few specific things.  Our HomeFund does not demand a monthly payment; the accrued interest of the debt is added to the principal of the debt each month.  The main reason why people ask for it is to allow for them to stay in their homes, when their incomes are small or depleted.  Our HomeFund does not have an age restriction; it has an income and net worth restriction.  A Reverse Mortgage provides an extra income to you when all your other savings are depleted and you are not ready to sell your home to be forced to move.

A HomeFund is a short-term mortgage, with a maximum of a 5-year term. 

Eligibility

Our HomeFund is for people who already own their own home, not for people who wish to buy a home.  You cannot own more than one property, in order to qualify for the HomeFund. The Equity in your home cannot go under 40% once the application is processed.  The equity is always determined by a full appraisal.  All other equity/investment/income sources must be depleted (or almost depleted) prior to receiving a HomeFund.  Owning other properties and having large investments, means you will not be eligible for our HomeFund.  We will also discuss other options for you such as:

  • getting another type of loan, such as a Home Equity Line-of-Credit
  • selling your home
  • buying a smaller home
  • renting another home or apartment
  • moving into assisted living, or other alternative housing

Qualifying for a HomeFund®

We will need to consider the following details of an application, prior to making a decision if the HomeFund is the right product for you.

  • your home equity (home’s appraised value)
  • the area where you live
  • your income sources
  • health challenges
  • current interest rates
  • other options (family support) or borrowing options

Accessing Money from a HomeFund®

If a HomeFund is the right product for you, we will explain the options which will be best suited for your situation.

  • lump-sum payment
  • planned advances, giving you a regular income
  • a combination of both of these options

When processed, the demand will be to pay off any outstanding mortgages and collateral loans that are secured by your property.  Any property tax delinquencies must also be paid in full from the HomeFund processing funds.  We may also demand that you pay off and close additional credit services, such as credit cards (if you have many of them).

You may use the remainder of the HomeFund proceeds for things, such as:

  • home improvements
  • add to your retirement income
  • covering healthcare expenses

Repayment Requirements

You don't need to make any regular payments on a reverse mortgage. You have the option to repay the principal and interest in full or with small payments, at any time.

Interest will be charged until the loan is paid off in full. The interest will be added to the original loan amount, which increases the loan principal over time.

If you sell your home or if you move out you'll need to pay the balance in full and will not have access to the HomeFund again.  Should you die, your estate will have to repay the loan.

If you still wish to live in your home after the 5-year term of the HomeFund has come to an end, we will need to process a new application to see if you can set up another 5-year HomeFund.  If you do not qualify, we will look into another borrowing product for you or demand that you sell your home.

Costs Associated with a HomeFund®

Costs associated with a reverse mortgage HomeFund will include:

  • an application fee
  • higher interest rate than for a traditional mortgage or Home Equity Line-of-Credit
  • a home appraisal fee
  • legal costs for the set-up and discharge of the HomeFund (a specific Solicitor must be used)
  • fees for Independent Legal Advice (from your own chosen Solicitor)

Contact us today to discuss our options and receive more details about our HomeFund® Reverse Mortgages.
 

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