Reverse Mortgage Information in Alabama

Whether retired or in your latter working years, your home can provide you with a financial safety net. For people who are in retirement, or considering it, finances are one of their utmost concerns. A reverse mortgage can help relieve those financial concerns.

Application & Counseling + Appraisal + Closing = $$$

What Is a Reverse Mortgage?

An FHA-insured reverse mortgage loan, also known as a Home Equity Conversion Mortgage, or HECM for short, is available to homeowners when the equity in their home is greater than the amount of debt against the home. Equity is the value of a home, minus what is still owed against the home. In order to qualify for a HECM, the homeowner must be 62 years or older, and the home must be his or her principal residence. When a borrower takes out a reverse mortgage, they are basically cashing in on the equity of the home. After any debt against the home is paid off, borrowers can receive funds in a lump sum, in monthly payments, or if they do not need the money immediately, in a growing, tax-free line of credit. Some borrowers will take a combination of these three payment types to meet their specific financial situation. Our professional staff will help explain these options to you.

The Reverse Mortgage Loan Process

To start the process of receiving a HECM, all you have to do is to speak with one of our experienced staff members. They will explain the program, help you assess its suitability, answer any questions you may have, and pre-qualify you for the loan. If you decide that a reverse mortgage is in your best interest, there are two “first steps” to get you going.

You meet with your McGowin-King reverse mortgage specialist to go over the details and to sign the application disclosures. In addition to the application, the Federal Housing Administration, or FHA, requires that all people taking out a reverse mortgage speak with an FHA approved counselor. This is a homeowner protection measure and is designed to ensure that borrowers are not being taken advantage of and that they understand all of the ins-and-outs of the loan process.

Once you have decided a reverse mortgage is right for you, and you have completed your application and counseling, we will schedule an FHA home appraisal to determine the value of your property for the HECM. The inspection takes about 30 minutes. Once the home has been appraised, the final underwriting takes place, and all that is left is about an hour of closing paperwork. There is no obligation at any point in the process, and once the closing documents are signed, you have three days to change your mind. On the fourth day, the loan proceeds are disbursed.

McGowin-King Mortgage, LLC has been working with homeowners since 1998. We understand the loan process and can identify good candidates for reverse mortgages. Our staff has decades of experience in the field and is ready to answer any questions you may. If you would like to learn more about the reverse mortgage process, or want to get started, contact us today. Our team is standing by.