Reverse Mortgage (HECM) Frequently Asked Questions
What is the process for a GMFS Reverse Mortgage?
GMFS Reverse Mortgage Process
Step 1: Private consultation with a GMFS Mortgage Reverse Mortgage Specialist
A GMFS Mortgage Reverse Mortgage Specialist will explain reverse products and recommend a product to best compliment your needs. GMFS Mortgage will provide you with a personalized proposal outlining all aspects of the reverse mortgage product you select.
Request a Free Consultation with a GMFS Mortgage Reverse Mortgage Specialist
Step 2: HUD Required Private Counseling
GMFS Mortgage will provide a list of HUD-approved counselors. The role of the counselor is to review the reverse mortgage product with you objectively to ensure you fully understand everything about the product.Private counseling sessions are a HUD requirement to move forward with any reverse mortgage product.
Step 3: Completion of Reverse Mortgage Application
Upon completion of the private counseling session, GMFS Mortgage will order the home appraisal, submit the loan for final approval and schedule a closing date with the borrower.
Since I am not making monthly payments to GMFS Mortgage, when does the reverse loan become due?In the event of your death or the home has not been used as your primary residence for more than 12 months, the borrower or homeowner’s estate can choose to repay the reverse mortgage (which includes the interest accrued plus any servicing fees) or put the home up for sale.
If the equity in the home is higher than what is owed for the balance of the loan, the remaining equity belongs to the estate.
If the proceeds from the sale of your home are not enough to pay off your reverse mortgage, the lender (e.g. GMFS Mortgage) must take a loss and request reimbursement from the Federal Housing Administration. Your other assets such as your investments, cars, etc. are not affected by a reverse mortgage and cannot be taken from you/the estate to pay off your reverse mortgage.
With a reverse mortgage through GMFS Mortgage does the lender own my home?No. You, the borrower, retain the title to the property. The reverse mortgage lender (e.g. GMFS Mortgage) is merely extending you a loan. Because you retain title, you are responsible for paying the property taxes, insurance and typical homeowner expenses – no different than a standard first mortgage or home equity loan.
How is a reverse mortgage through GMFS Mortgage different than a home equity loan?Both a reverse mortgage and a home equity loan use the equity you have built up in your home to provide you with readily available cash. They differ in that with a home equity loan you must make regular monthly payments. However, with a reverse mortgage you do not make any monthly mortgage payments for as long as you stay in the home. Although no monthly mortgage payment is required, homeowners are still responsible to pay their homeowner’s insurance and property taxes.
How does GMFS Mortgage determine the amount of cash I am eligible for through a reverse mortgage?The amount you can borrow via a reverse mortgage depends on several factors, including your age, current interest rates and the appraised value of your home and FHA’s lending limits. Typically, the older you are, the more valuable your home, and the less you owe on it, the more money you can get.
Can I get a reverse mortgage if I still owe money on a first or second mortgage?Yes. GMFS Mortgage wants you to know that you may be eligible for a reverse mortgage even if you still owe money on your first or second mortgage. The funds you would receive in the reverse mortgage would be used to pay off whatever existing mortgage you have on the property.
Is GMFS Mortgage a member of the National Reverse Mortgage Lenders Association (NRMLA)?Yes, GMFS Mortgage is a member of the National Reverse Mortgage Lenders Association (NRMLA)
Is GMFS Mortgage accredited by the Better Business Bureau (BBB)?Yes. GMFS Mortgage has an A+ rating with the BBB and received their prestigious “Torch Award for Marketplace Trust”!
Where is GMFS Mortgage located?The GMFS Reverse Mortgage team is located in the Sherwood Forest Baton Rouge, LA branch. The GMFS main office is also in Baton Rouge. GMFS Mortgage also has branch locations in the states of Alabama, Georgia, Mississippi and Texas.