Just like a forward mortgage, the customer retains the title and ownership during the life of the loan and they can sell the home at any time.
Reverse Mortgage loan proceeds are taxfree as it is not considered income. However, it is recommended that you consult your financial advisor and appropriate government agencies for any effect on taxes or government benefits.
The HECM is a government insured loan and as long as the borrower maintains the home, pays property taxes and homeowners insurance, the FHA will insure the difference between the value of the home and the amount due to the lender at the time of the sale. Typically over half the cost of a reverse mortgage loan is paid to FHA for this insurance.
Actually, many borrowers use the Reverse Mortgage loan to pay off an existing mortgage and eliminate monthly mortgage payments.
With a reverse mortgage there are no monthly mortgage payments required. Borrowers are only required to pay property taxes and homeowners insurance.
The perception of the reverse mortgage loans as an assist for the “financially strapped” borrower is changing – many affuent senior borrowers with multi-million dollar homes and healthy retirement assets are using reverse mortgage loans as part of their financial and estate planning, and are working closely in conjunction with financial professionals and estate attorneys to enhance the overall quality and enjoyment of life.
Katie Novak
Federated Lending was a great mortgage…
Federated Lending was a great mortgage company to work with! We were able to ask questions and get immediate answers.
Jorge Figueroa
Federated Lending Is Fantastic and Honest
This was such an easy transaction. What is probably the most stressful thing to do Andy and his Team made this absolutely seamless. Everything was done perfectly and right on time. Zero issues at the closing table and it all went exactly as it was explained. I was prepared for so many things to be a push up and there was none of it. NONE! I cannot say enough ...
Megan Detwiler
We were happy with our experience. Initially there was a step missed that caused a slight delay, but we couldn’t be upset because it ended up getting us a lower rate overall. We were able to sign the documents in the comfort of our own home which was super convenient and appreciated. Would recommend!
Patrick Mallon
Federated Lending has great customer…
Federated Lending has great customer service, a very knowledgeable staff, and made re-financing an effortless experience.
Kristen Katzianer
Easy process from start to finish
Easy process from start to finish. The underwriter should make more money.
Shawn Cannon
Second time working with Vince
Second time working with Vince. Have had nothing but great experiences. Highly recommend!!
Mike Pawlikowski
Federated Lending comes through again
Federated Lending comes through again. Tom K. and Federated Lending team helped me through the process of getting my original mortgage and now again with the refinance. They made the process very easy and I am extremely happy with the end result. I would strongly recommend if your looking for a mortgage or refinance that you reach out to the Federated Lending Team.
Bart Cerami
Andrew Larson and Federated Lending made refinancing my home simple, and saved me a lot of money in the process. And Andy continued to assist me after the closing when I had a question regarding my local tax payment. I have already recommended him to several of my friends and will continue to do so. Thanks Andy!!
Jacob Desperak
Wonderful and easy experience!
My wife and I had a very good experience with Fedlend thanks to Andy and Kathy. We couldn’t be more thankful for all the help and guidance we received along the way. Would definitely recommend to all home buyers, as we will use Fedlend for our next purchase or refinance.
Elaine Punchello
I've trusted Federated Lending multiple…
I've trusted Federated Lending multiple times for my home mortgages. They make what can be a difficult process easy to get through. I've never had a delay in a settlement because of my mortgage, which is a frequent issue with other lenders. I'll continue to use them and recommend them. Thanks!
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Licensed Mortgage Banker in PA and NJ
NMLS Company License 112272
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Licensed by the PA Department of Banking and Securities
Licensed by the NJ Department of Banking and Insurance
These materials are not from HUD or FHA and were not approved by HUD or a government agency.
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