How do my clients qualify?
Qualifying for a reverse mortgage is simple. Borrowers need to be at least 62
years of age, own their own home and use the home as their primary residence.
There are NO income and NO credit requirements.

How can they use the money they receive?
Any way they wish. Clients can establish a line of credit to draw from at any time.
They can get immediate cash for special purposes such as repairs, improvements,
unexpected medical expenses, or even to buy a car. The borrower can elect to
receive regular monthly payments to help supplement your present income or use
a combination.

How much money can they receive?
The amount of money your clients receive is determined by their home value (up
to the applicable lending limit), the age of the youngest borrower and the expected
interest rate (equal to the current ten-year T-bill rate plus 1.5%). The older the
borrower, the more equity they will be able to access. The higher the Expected
Interest Rate, the less equity they may access.

How do they receive the money?
Your client will choose a payment schedule that fits their individual financial plan.
There are several ways to receive the money:
As a monthly supplement– to increase their monthly income
All at once – as a lump sum- this provides cash for a large expense.
As a line of credit– creates an account to draw on as they require money
Any combination of the above options

What costs are involved?
Just like a standard mortgage loan, reverse mortgage costs include appraisal,
credit report, title insurance, legal fees, loan origination, and recording fees. At
Financial Heritage, all of these normal loan costs, with the exception of the
appraisal, can be included in your loan balance. Our representative will provide a
good-faith estimate of the costs involved for you.

How is interest charged?
The interest rate on a reverse mortgage is an adjustable rate and is tied to the 1-
year Treasury index. There is a life-of-the-loan cap on the interest rate. Interest
rate changes do not affect the amount of reverse mortgage money you receive,
and you are not charged any interest on monies that have been approved but not
yet withdrawn.

Is there more than one reverse mortgage?
There are a number of reverse mortgage programs available to your clients giving
them maximum flexibility in obtaining the best loan for their specific situation. New
reverse mortgage programs are developed on a regular basis

The majority of reverse mortgages issued are the FHA (Federal Housing
Administration) "Home Equity Conversion Mortgage" (HECM). They are federally
insured and come in two versions: the monthly adjustable version or the annual
adjustable version. "Fannie Mae" (FNMA) offers the "Home Keeper" Reverse
Mortgage.

What if there is already a conventional mortgage on the client's
home?
The reverse mortgage is often used to pay off an existing loan creating an
immediate cash flow boost. Existing mortgages must be paid off at closing.

What about a home in a “living trust?”
A homeowner who has put the home in a living trust usually qualifies for a reverse
mortgage, subject to review of the trust documents.

Who really owns the home?
Your client always retains title to their home. A reverse mortgage is merely a loan
against the property so home ownership is maintained by the borrower.

How safe are reverse mortgages?
Reverse mortgages are a very safe income option for senior homeowners. The
borrower(s)' name remains on the title. Fannie Mae guarantees the payments on
Home Equity Conversion Loans that are made to your client and also guarantees
that they can stay in their home as long as you like.

Is the reverse mortgage process complicated?
No. Your clients will receive a complete explanation of their options and will be fully
supported through the decision-making process. Your client encouraged to bring
family members and any other trusted individuals into the discussion and to take
the time necessary to determine their best course of action.

What are the responsibilities of the borrower with a reverse
mortgage?
They are required to pay their property taxes and property insurance, maintain the
property and continue to live in it as their primary residence.

Will their rights to public benefits be affected?
A reverse mortgage loan will not affect your client's rights under Social Security or
Medicare. Homeowners on SSI or Medicaid should observe pertinent rules.

Who should they consult for advice?
Encourage all of the borrower's advisors, both personal and professional, to speak
with a WealthBridge Reverse Mortgage Planner to review the needs and options
available. One of the best aspects of the government-supported reverse mortgage
program is the fact that trained counselors will advise your clients about all the
alternatives and options at a free counseling session.

How does my client get started?
Fill out the request form on the Reverse Mortgage Referral page.A Reverse
Mortgage Adviser will assist your client in evaluating the different reverse
mortgage options and will provide them with a no-cost, no-obligation, written
evaluation of their reverse mortgage options. When your client is ready, their
Reverse Mortgage Adviser will assist them through the entire process of obtaining
a reverse mortgage.

What will the Reverse Mortgage Adviser discuss with my clients?
The Reverse Mortgage Adviser (RMA) will discuss only the reverse mortgage
options available to your client. They will answer questions and provide specific
information about reverse mortgages but will not discuss your client's financial plan
or suggest strategies for the use of the proceeds from their reverse mortgage. The
RMA is trained to direct your clients back to you for advise on these issues.

Additional Questions?
Click here for an email reply to your questions. Please include "Advisor
Question" in the title.

For immediate assistance during the hours of 9:00 AM to 5:00 PM Pacific Standard
Time, you may call: 1-800-350-3146