Reverse

A reverse mortgage is a product created by the U.S. Department of Housing and Urban Development (HUD) to be used to withdraw part of the capital (equity) of your home now when you most need it. The product is accessible to people 62 years or more that own and live full time in their home. The program is highly regulated to ensure a safe transaction for the client and one of benefit for HUD.   It does not allow the intervention of third parties, and it requires you to participate in a consumer information session given by a HUD- approved counselor before originating your loan application. You can select from various payment plans. The reverse mortgage can also be used to purchase a principal residence if you have the cash money to pay for the difference between the money available through the HECM and the sales price, also, for the closing costs of the property that you wish to buy. After closing a reverse mortgage, even though you never make a mortgage payment again, you continue to be responsible for the payment of the Hazard Insurance, property taxes and the maintenance of the property. Educate yourself, talk it over with your children, and then call one of our mortgage executives at 787-725-8000.

Frequently asked Questions

What is a reverse mortgage?

A mortgage product that allows you to cancel your current mortgage debt and/or obtain some surplus, without having to make monthly mortgage payments again.

Who backs or promotes it?

The federal government of the U.S.A. through the Deparment of Housing and Urban Development (HUD).

Who qualifies for a reverse mortgage?

Any person 62 years of age or older, residing in their own home, which qualifies pursuant to the parameters of the FHA.

If I am married do we both have to be 62 years of age or older?

Yes. If married, both spouses must comply with the minimum age requirement. However, if you are married outside of the conjugal property regime, with marriage articles, it is not required that both comply with the minimum age requirement.

Can my children attend the bank orientation?

Yes. In fact, we urge everybody in the family to know about the transaction.

What happens to the title to my property?

The title to your property continues to be yours, it is not passed onto the mortgage institution with whom you make the transaction.

With the reverse mortgage do I lose the opportunity to leave my house in inheritance to my children?

No. So much so that in some circumstances it is only through a reverse mortgage that you can guarantee that the property will not be lost by a foreclosure or sale.

When do the payments to the reverse mortgage commence?

Once the last spouse dies, the property is abandoned for a period in excess of six (6) months or is sold. the titleholder to the property continues to be responsible for the payment of hazard insurance, property taxes and maintenance of the complex (if applicable).

Who can offer a reverse mortgage?

In Puerto Rico only these mortgage institutions that are certified by HUD can offer the reverse mortgage.

Can a third party charge for processing a revese mortgage?

No, in Puerto Rico it is against HUD regulations for a third party to benefit economically from your transaction, HUD does not allow third parties to market this product.

Where do I get more information about the reverse mortgage?

You can access www.hud.gov/offices/hsg/sfh/hecm/rmtopten.cfm.

What is the importance of the appraisal of my property at the time of making a reverse mortgage?

The amount to lend in the reverse mortgage will depend in pat on the appraised value of your property, which value has been affected by the current conditions of the real estate market on the island.

How do the closing costs of a reverse mortgage compare with a traditional mortgage?

The costs are higher when closing a reverse mortgage.

For whom is a reverse mortgage convenient?

The reverse mortgage is not for everybody, although it is the only option for some. If you do not have sufficient income, your credit score is not the best and you are about to lose your home or are starting to be late in your payments, the revese mortgage can be the solution.

Can a reverse mortgage be made if one has been diagnosed with dementia or Alzheimers?

To be able to make this transaction, a mental capacity is required that allows your understanding and acceptance. Nevertheless, if one person has been diagnosed with any of these conditions, the family may resort to the court to request a judicial order to authorize the transaction.

Info

For more information please call 787-725-8000.