If you are an elder military veteran who has purchased a home with a VA loan, and are looking for an additional way to supplement your income, you may want to consider a reverse mortgage. Reverse mortgages are unique in the fact that, rather than making mortgage payments to a lender, borrowers actually receive money from the lender, which can help finance a homeowner’s retirement fund. Dan Turner, with Geneva Financial, can work closely with you to determine if turning your VA loan into a reverse mortgage is a beneficial option for you. We serve clients in the regions of Hawaii, Illinois, and Ohio, contact our offices today for a consultation.

Reverse Mortgage Basics

A reverse mortgage is a loan for people 62 years or older that allows the borrower to convert their home equity into a sum of cash or a line of credit without having to pay monthly mortgage payments. A borrower can use the money from the loan for any purpose they choose, such as home repair, health care costs, or any other living expenses. The loan must be repaid when the borrower moves out, sells the home, or passes away.

To qualify for a reverse mortgage, you must:

• Be 62 years of age or older
• Live in the home as your primary residence
• Own your home, or have have a low enough remainder on the outstanding balance of your loan for the reverse mortgage to pay it off
• You must complete a loan counseling session in order to fully understand the implications of a reverse mortgage
• You must be able to pay for closing costs, property taxes, homeowner’s insurance, and other related fees

Turning a VA Loan Into a Reverse Mortgage

If you are a veteran and took out a VA loan as a traditional mortgage to fund your home, you can pay off a VA loan with a reverse mortgage. If there are enough finances to be able to do so, a reverse mortgage can be used to pay off any existing mortgage. It is important to note, however, that since VA loans usually have a higher loan value, turning a VA loan into a reverse mortgage may be a bit more challenging since you must already have a sufficient amount of equity built up in a home in order to qualify for a reverse mortgage. A borrower should be aware that there are several scams targeting people who are searching for affordable loan options, unfortunately. You may have observed certain advertisements that promise special no-fee reverse mortgage options for veterans, however, the Department of Veterans Affairs does not have the option of a reverse mortgage.

Getting Assistance With a Reverse Mortgage

If you are a veteran who had the opportunity of buying a home with a VA loan, you may want to consider enhancing your retirement with a reverse mortgage. Dan Turner, with Geneva Financial, can help you determine if a reverse mortgage is the right option for you if you are located in the regions of Hawaii, Illinois, and Ohio. Contact us today for a consultation.