Income4Life | Reverse Mortgages. Brought to you by Greenlight Financial Services

What is the Income for Life home equity draw mortgage?
How do I know if Income for Life is right for me?
What is needed to qualify for the Income for Life home equity draw mortgage?
When does the loan have to be repaid?
Will my Medicare benefits or Social Security income be affected if I choose Income for Life?
What happens to the equity in my home when I pass away?
Will I lose my home by taking this loan?
Is the interest on the Income for Life home equity draw mortgage tax deductible?
Is it possible to pay back the equity I've borrowed?
What is the difference between a home equity draw mortgage and a traditional home equity line of credit?
How can I receive proceeds from Income for Life?
What are the costs associated with Income for Life?
How is the interest rate on Income for Life calculated?
What are the benefits of Income for Life?
How do I compare home equity draw mortgages?
How much can I receive from Income for Life?
What types of homes qualify for use on a home equity draw mortgage?
Who do I have to speak to before I obtain a home equity draw mortgage?

Question: What is the Income for Life home equity draw mortgage?
Answer: A reverse mortgage is a government insured loan provided to homeowners, 62 years of age and older. Unlike a traditional mortgage where the borrower is required to make a monthly payment, this loan works in reverse. Instead, the lender pays a monthly income to the borrower(s) each month for as long as they live in the home.

Back to top

Question: How do I know if Income for Life is right for me?
Answer: The best way to answer this question is to speak with one of our Knowledgeable home equity draw mortgage specialists. Once they know your situation, they can explain the various options available to you.

Call us at 1-877-55-INCOME (or 1-877-554-6266)

Part of the lending process requires the borrower to receive counseling (free of charge) from an independent licensed counselor. We will arrange a meeting either in person or by phone, to answer all of your questions about this loan. Your home is one of your biggest investments, and it's important that you make an informed decision. It's the Greenlight way!

Back to top

Question: What is needed to qualify for the Income for Life home equity draw mortgage?
Answer: There are no income, health, or credit* requirements needed to qualify for the Income for Life home equity draw mortgage. The few requirements that are necessary to qualify are:

You are at least 62 years of age.
Your home is your primary residence.
You have a enough equity in your home to payoff any existing mortgage balances and to receive additional income when needed.

Back to top

* The lender will order a credit report. A poor credit history may not affect your qualifying for this loan but a default on a federal government debt will.

Question: When does the loan have to be repaid?
Answer: The loan must be paid in full when one or more of the following events occur:

All borrowers move out of the home permanently.
The home is sold or all borrowers pass away.
Last surviving borrower moves out of the property for a consecutive 12 month period due to illness.
Property taxes or homeowners insurance are not paid when due.
The property undergoes significant deterioration and repairs are not made.
Or if you violate any other part of the mortgage agreement and are unable or refuse to correct the violation.

Question: Will my Medicare benefits or Social Security income be affected if I choose Income for Life?
Answer: The income you receive from this home equity draw mortgage will not affect your Medicare benefits or the Social Security income you already receive.

If you receive other public assistance such as Supplemental Social Security Income, Medicaid, or Medical however, we do suggest consulting with your benefits advisor. In some situations the extra income you receive may affect your eligibility for these programs.

Back to top

Question: What happens to the equity in my home when I pass away?
Answer: When all borrowers pass away, the loan is due and must be paid. Your heirs will have the options to either refinance into a traditional mortgage, payoff the loan with other assets, or sell the home. The remaining equity is passed to your heirs.

Back to top

Question: Will I lose my home by taking this loan?
Answer: As long as the homeowner's insurance, property taxes and repairs are made when necessary you will retain the title to your home for as long as you live in your home. A portion of the equity in your home may be set aside to assure these expenses are paid.

Back to top

Question: Is the interest on the Income for Life home equity draw mortgage tax deductible?
Answer: The interest on the Income for Life home equity draw mortgage is typically tax deductible at the time the loan is paid in full. We recommend consulting with your tax advisor to discuss your individual situation.

Back to top

Question: Is it possible to pay back the equity I've borrowed?
Answer: Yes. Should you decide that you want to increase the equity in your home, you can pay back some or all of the balance at any time. Full repayment will terminate your loan and further draws will not be allowed.

Back to top

Question: What is the difference between a home equity draw mortgage and a traditional home equity line of credit?
Answer: Both products use the built up equity in your home to provide you with accessible cash to fulfill your financial needs. However, to qualify for a home equity draw mortgage, you do not have to have an existing income because the plan is intended to supplement your income. Additionally, You receive monthly proceeds from the home equity draw mortgage, whereas a home equity line of credit, you make monthly payments. Lastly, there are no out of pocket expenses from a home equity conversion plan.

Back to top

Question: How can I receive proceeds from Income for Life?
Answer: The many ways you can receive proceeds from Income for Life are intended to provide you with the flexibility to meet your financial obligations.

Lump sum: you can receive all the money at one time
Tenure: for as long as the borrower is alive and still occupying the home as the primary residence, you can receive equal monthly payments
Term: you can receive equal monthly payments for a fixed amount of months
Line of credit: funds can be taken at any time and at any amount until the funds are depleted
Modified tenure: this option combines the line of credit and tenure options to allow you to have monthly payments with the ability to withdraw extra cash in times of need.

Question: What are the costs associated with Income for Life?
Answer: There are no immediate out of pocket costs and fees associated with Income for Life because all the expenses are paid by the home equity draw mortgage. These costs include an application fee, origination fee, servicing fees, closing costs, and insurance fees. All costs are calculated and aggregated to the loan principal and paid when the loan is due.

Back to top

Question: How is the interest rate on Income for Life calculated?
Answer: There are two initial interest rates available. Both are variable rates that are tied to the one-year U.S. Treasury Security Rate which is published weekly in the Wall Street Journal. One difference is that one option adjusts annually and the other adjusts monthly. The current U.S. Treasury Security Rate plus the margin will determine your initial interest rate.

Back to top

Question: What are the benefits of Income for Life?
Answer: If you are 62, retired or will be retired, may want to look into a home equity draw mortgage for the numerous benefits it can bring to you financially.

Without selling your home or losing title, you can convert the built-up equity into cash
Income for Life can supplement your income and/or retirement by providing you with monthly proceeds
You can alleviate some of your tax burden because proceeds from a reverse mortgage are tax-free
No existing income is necessary to obtain a home equity draw mortgage

Question: How do I compare home equity draw mortgages?
Answer: In order to compare one type of a home equity draw mortgage from another, you should pay attention to the TALC, which is the total annual loan cost. This cost accumulates all the costs and fees for Income for Life into a single annual average rate. You can use this figure to compare between the same types of home equity draw mortgages.

Back to top

Question: How much can I receive from Income for Life?
Answer: The amount of cash that you can receive from Income for Life is calculated based upon the following characteristics:

Type of home equity draw mortgage
Current interest rate
Home value (lesser of appraised value or the FHA insurance limit)
Home equity
Number of homeowners
Age of homeowners

When you contact one of our mortgage consultants, they will analyze these characteristics and determine the maximum amount available to you. Typically the greater your home value and the less you owe on an existing mortgage, the more money you will receive from the home equity draw mortgage.

Back to top

Question: What types of homes qualify for use on a home equity draw mortgage?
Answer:

Single family homes
Town homes
Condominium units if in HUD approved development
Manufactured housing if in HUD approved development

Question: Who do I have to speak to before I obtain a home equity draw mortgage?
Answer: Before obtaining a home equity draw mortgage, you must meet with an independent HECM counselor. This counseling session is at no cost to you. We can provide you with a list of counselors in your area. The counselor provides you with all the necessary information regarding HECM and also provides alternative solutions to your financial needs. The counselor will determines whether a home equity draw mortgage is right for you. Upon completion of the meeting you will be given a Counseling Certificate which must be provided to the lender.

Back to top


Home \| About Income for Life \| Common Questions \| State Licensing 55Income4Life is brought to you by Greenlight Financial Services � 2006. Your Privacy Rights