Frequently Asked Questions

Today, a Reverse Mortgage is becoming an increasingly popular way for Seniors to gain financial independence and secure their retirement. Here are some important questions & answers that cover various aspects of a Reverse Mortgage.

Q: What is a Reverse Mortgage?
A: A Reverse Mortgage is a loan that allows homeowners age 62 and older to convert a portion of the equity in their home into tax-free cash. Reverse Mortgage loans are insured by the Federal Housing Administration (FHA).

Q: I want as much cash in hand as possible. Can I count on Quality to do the job right?
A: When it comes to putting the most money in your pocket, we will always do what it takes to beat the competition.

Q: Do I have to make monthly mortgage payments?
A: No. Unlike a traditional home mortgage or home equity loan, you do not make monthly loan payments. As with all mortgage loans, you must continue to pay your property taxes and homeowners insurance premiums.

Q: I currently have loan(s) against my property. How would a Reverse Mortgage help me financially?
A: Your actual mortgage payments disappear. For example, let’s say you now have a $1,200.00 mortgage payment without taxes and insurance. With a Reverse Mortgage you now have an additional $1,200.00 a month to spend any way you want. That comes to $14,400.00 per year and $72,000.00 over the next five years. Wouldn't you rather have all that money in your bank account? Your mortgage loan(s) are paid off through the Reverse Mortgage and the cash out is tax free.

Q: I always thought I had planned for my retirement. Why do I and so many Seniors now feel compelled to supplement our retirement with a Reverse Mortgage?
A: You did nothing wrong. Factors out of your control such as the economy, investments that did not go as promised, and unforeseen expenses were the culprits. Don’t blame yourself. It’s not your fault.

Q: Do I still own my home?
A: Yes. You keep 100% title to your property.

Q: How long before the money is in my hands?
A: The process can be completed in as little as 3-4 weeks. We will always make your life easy throughout the process and all we ask is that you let us do all the work.

Q: Do I have to pay taxes on the cash proceeds I receive from a Reverse Mortgage?
A: No. Because funds from Reverse Mortgages are considered loan proceeds and not income, the money you receive is not considered taxable income.

Q: Are there any restrictions on how I use the money I receive?
A: No. You can use the money from your Reverse Mortgage loan any way you like. Some Seniors use it to pay for in-home health care, medical costs or unexpected home repairs. You can even use it for a vacation, a new car, or to help your grandchildren pay their college expenses. Use it however you want - it’s your money!

Q: Does Quality offer any credits or rebates?
A: We will be happy to credit you up to $500.00. All you have to do is tell your Quality representative, "I read this question". In a nutshell we are rewarding you for doing your homework. Feel free to call for details.

Q: Do I have to show my income?
A: No. Proof of income is NOT required at this time.

Q: Can I save money if I pay off my credit cards?
A: Most definitely. For example, let’s say you have credit card payments of $500.00 a month. By paying of the credit cards through a Reverse Mortgage, you will be adding $500.00 a month to your budget! You can also significantly improve your monthly cash flow by paying off your car, boat, or home improvement loan.

Q: Do FICO credit scores matter?
A: FICO scores are irrelevant. A person can be behind in their mortgage or even in foreclosure.

Q: What are my options regarding my cash proceeds?
A: You can get money in a lump-sum, a monthly check, a home equity line of credit or a combination of these options. You choose the option that best fits your needs.

Q: What happens to my home upon my death?
A: Your heirs can sell the property and capture any remaining equity. If your heirs wish to keep the house, they can simply pay off the balance due. If your heirs do not choose either one of these two options they have absolutely NO liability.

Q: What is the difference between a Reverse Mortgage and a home equity loan? Are there any income requirements?
A: With a traditional mortgage or home equity line of credit, you must meet income and credit requirements to qualify for the loan, and of course, you have to make monthly mortgage payments. With a Reverse Mortgage, there are NO credit score and generally no income requirements. Best of all, you have NO mortgage payments.

We look forward to answering any questions you have. Remember, there is no such thing as a “stupid” question. Let’s work together to achieve your goals.