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I thought they loved me, I've lost everything, please don't let me die too

Seniors, 65 years or older, who own their home may be able to get the equity out of their residence without selling it. Home Equity Conversion Mortgages, or HECM, allows you to tap into what your home is worth and still be able to live in the residence. There are a couple of different types of reverse loan options. The one you choose will determine how your loan is disbursed.

Line of Credit

This first type of Home Equity Conversion Mortgages is a line of credit. Instead of getting a lump sum single disbursement, many borrowers choose to open a line of credit. This allows them to access funds as they need them. In order to get the money, the borrower has to submit a written request to the company servicing the loan.

One of the best things about this is that the line of credit can grow over time. It doesn't earn interest. Instead, the line of credit takes into account that the home appreciates in value and that the borrower has grown yet another year older.

Single Disbursement Lump Sum

Not everyone is interested in having to present a written request for funds every time they need to tap into their funds. Others would rather get a single disbursement. The only problem is that if the borrower wants more money later, he or she will need to refinance later.

Of course, the borrower can choose to preserve some of their home equity by taking less than what he or she qualifies. An example of this is the borrower is eligible for $150,000 but only needs $25,000 to fix their roof. He or she could take the smaller amount instead.

Term Monthly Payments

Some choose to gain access to their funds by receiving monthly payments instead of a line of credit or lump sum. One option is the term payments. This allows borrowers to receive monthly payments for a set amount of time. For example, if the borrower is 65 and he or she wants to defer social security until age 72 in order to receive maximum benefits. This person could choose to take term payments on their Home Equity Conversion Mortgage for seven years. Each month he or she will receive the same amount, even if the value of the home diminishes during that time.

Tenure Monthly Payments

While term payments can help borrowers bridge the gap between retirement and the beginning of social security, others choose to receive monthly payments for as long as they live in the house. Again as with the term payments, the borrow will receive the same monthly payments. The payments will only cease when the borrower permanently leaves the home or passes away.

Most Home Equity Conversion Mortgages, no matter what payment option is chosen, don't require repayment as long as the borrower remains in the house. With the line of credit and term payment options, monthly payments may be required sooner. The loan specialist should explain the terms and conditions prior to closing.

Sasha is the best! This little beauty will absolutely melt your heart. She’s so young and has so much life ahead of her but just needs a home to grow in.

She was recently hit by a car and has some injuries to her front legs but just needs some time in a comfy home to heal. She can’t wait to show the world what she’s capable of! Sasha is about 15 lbs and is only 6 months old.

**PAST SHELTER DEADLINE! This dog is in ACS KENNELS and at risk of euthanasia as space is needed by the city at 9:30am Mon-Sat, and again at 5pm Mon-Fri & 3pm Sat.**
ADOPTERS PLEASE EMAIL: acsadoptions@sanantonio.gov
FOSTERS/RESCUES PLEASE EMAIL: placement@sanantoniopetsalive.org

We are NOT the City Shelter to where pictures were taken. FOR MORE INFO ON THIS PET please contact:
San Antonio Animal Care Services
4710 State Highway 151
San Antonio, TX 78227
Phone Number: (210) 207-4PET.
Fax Number: (210) 207-6673
Ask for information about animal ID number #A505775


STATUS : - read comment for update from crossposter
The term reverse mortgage is everywhere these days. It frequently appears in commercials or shows up on Internet searches. But you may not understand what it is exactly.

In short, it is a unique home loan that allows homeowners to convert some of their home's equity to cash. This equity that the homeowner has acquired throughout years of making payments on their home can now be returned to them in payment installments. In a typical mortgage situation, the borrower pays the lender and each payment reduces the amount owed and builds the borrower's equity in the home. In a reverse mortgage, the borrower receives payments from the lender, and each payment increases the loan balance and declines the amount of equity.

Who originates these loans?

Most of these loans are originated by the Federal Housing Administration (FHA) and are known as a Home Equity Conversion mortgage or HECM. An HECM is guaranteed by the FHA, so the borrower does not have to be concerned about failing to receive payments from their lender.

Who qualifies for these loans?

To qualify for this type of loan, homeowners must be age 62 or older and have significant equity in their home. In addition, to obtain an HECM, homeowners must own their homes outright or the balance they owe on their home must be low enough that it can be paid off with the proceeds from the reverse loan at closing. In addition, the borrower must reside in the home and be able to pay for recurring charges associated with the property including taxes and insurance. Finally, before getting the loan borrowers must receive information from an HECM counselor. The applicant's home must be a single-family home, an HUD-approved condominium or manufactured home that meets FHA requirements, or a two to four unit home if the borrower resides in one of the units.

How much can you borrow?

The amount a homeowner can borrow with a reverse mortgage varies depending on their age, the home's worth and the loan's interest rate. In most cases, homeowners of an older age are able to borrow more money, and the more a home is worth or the more equity the owner has in it, the more the owner is able to borrow. Lower loan interest rates also increase a homeowner's borrowing power.

How do I receive my funds?

With an HECM, borrowers have several choices of how to receive their payments. Borrowers can choose to receive a lump-sum payment at the loan closing or the borrower can take out a line of credit. This line of credit can be used as the borrower chooses and grows over time. A borrower can also choose to receive payments in the form of a monthly annuity. A tenure monthly annuity is a monthly payment that the borrower receives for the entire time they live in the home. A term monthly annuity is a monthly payment that the borrower receives for a set period of time that they choose. Borrowers can also choose to combine these options, such as by opting to receive a monthly annuity but also taking some cash at closing. By paying a small fee borrowers can also switch from one option to the other.

A reverse mortgage can be a beneficial source of income for senior citizens. By researching the pros and cons of this type of loan, homeowners can determine if it is a good fit for their financial situation.