What is A Reverse Mortgage?
Home Equity Conversion Mortgages (HECMs), also known as Reverse Mortgages, were created over 25 years ago to help Americans age 62 and older convert a portion of their home equity into tax-free money to improve their lifestyle in whatever way they choose. They can be a fantastic tool in funding the retirement and lifestyle you or a loved one deserve.
Our Simple Reverse Mortgage Process:
Step 1:
Connect with a Reverse Specialist
If you’re considering a Reverse Mortgage loan, the best way to determine if it is the right thing for you is to simply give us a call. A Southern Trust Reverse Mortgage Specialist will look at your current situation and financial objectives, then discuss the best options for you. This consultation is risk-free and free!
Step 2:
Mortgage Counseling and Application
The second step is one that is required by HUD as a protective measure for all Reverse Mortgage applicants. This will be Reverse Mortgage counseling with a licensed professional. Next, you will complete your Reverse mortgage loan application with the help of a Southern Trust Mortgage Reverse Specialist.
Step 3:
Loan Processing and Loan Approval
The next step will be the appraisal. Your Reverse Mortgage Specialist will schedule an appraiser to come to your home and determine the value of the property. This is required for all mortgage applications before submitting the underwriting for review.
Step 4:
Clear to Close on Your Reverse Mortgage
You will be contacted by your Reverse Mortgage Specialist once your loan is clear to close and final documents can be signed. At this time, any other questions you may have will be answered. Congratulations!
How Does It Work?
A reverse mortgage is a loan, not a grant program by the government. And just like any other loan, you have certain obligations to maintain your home, to pay your taxes and insurance. Reverse mortgages allow you to remain in your home until the last borrower on the loan permanently leaves the residence.
A reverse mortgage is different than a traditional loan in that it operates exactly in reverse. While traditional loans decrease debt and increase equity over the life of the loan, reverse mortgages do the opposite. Another way to look at is, as you make payments on a traditional loan, the amount you owe on the home is reduced and, in turn, the equity you have in the property increases over time. In a reverse mortgage, you make no payments and draw out funds. As interest accrues on the loan, the balance grows and your equity in the property becomes smaller. This process gives you acces to funds for whatever purpose you desire through a reverse mortgage.
What are the Benefits?
Flexible Payment Options:
Depending on the type of loan you choose, you can receive the Reverse Mortgage loan money in the form of a lump sum, annuity, credit line or some combination of the above.
Home Ownership:
With a Reverse Mortgage, you retain home ownership and the ability to live in your home. As such you are still required to keep up insurance, property taxes and maintenance for your home.
Federally Insured:
The Home Equity Conversion Mortgages (HECM) is the most widely available Reverse Mortgage. It is managed by the Department of Housing and Urban Affairs and is federally insured. This is important since even if your Reverse Mortgage lender defaults, you’ll still receive your payments.
Stay in Your Home and Improve Your Immediate Finances:
Depending on the type of loan you choose, you can receive the Reverse Mortgage loan money in the form of a lump sum, annuity, credit line or some combination of the above.
Why Trust Southern Trust With Your Reverse Mortgage?
Founded in 1998, Southern Trust Mortgage is a full-service mortgage lender. We offer diverse mortgage products designed to meet any home financing need. Our continued success is a result of the outstanding customer service we offer our clients and business partners. Quick decisions are an imperative in today's fast-paced market, so all loans are expedited through local processing, underwriting, and closing agents. Prompt, outstanding service truly sets Southern Trust Mortgage apart from its competition.
Advantages of Partnering With Southern Trust
- In business since 1998
- Dedicated reverse mortgage team with over 20 years of experience
- Very competitive interest rates
- In-house underwriting, processing and funding
- Experienced mortgage loan officers and management team
- Outstanding and prompt service
- Approved direct lender of FHA, VA, Fannie and Freddie
- We’ve closed over 65,000 loans - we are experienced and effective
- We develop lasting relationships with our clients built on a foundation of confidence and trust.