Find the Best Reverse Mortgage Lenders in Green Bay, WI

How to get a reverse mortgage in Green Bay

Green Bay’s real estate market has shown signs of warming, adding to home values. And with the number of people in Green Bay age 65 and older expected to double to one-quarter of the population in the next two decades, according to state figures, there could be more residents who could benefit from a reverse mortgage.

What is a reverse mortgage? It is a loan against home equity, with the homeowner borrowing from a reverse mortgage company. But the borrower does not make monthly payments to repay the loan. Instead, the loan is not repaid until the homeowner sells, moves or dies.

A Home Equity Conversion Mortgage, or HECM, which is insured by the federal government, is the most common type of reverse mortgage. There are also private loans, known as proprietary reverse mortgages.

While there are some exceptions, generally the loan does not need to be repaid until the last person on the deed is deceased, you no longer reside in the home or loan terms are not being met. At that point, the home can be sold to pay back the loan. If that is undesirable to heirs, there are other options they can pursue.

To qualify for a reverse mortgage, you generally need to meet the following requirements:

• Be 62 years of age or older.
• Have your house paid off, or very nearly paid off.
• Live in the home and maintain it.
• Be able to cover all home expenses, such as property taxes and insurance.

Be prepared to incur some costs as you pursue a reverse mortgage, such as closing costs and mandatory counseling costs. Often those costs can be lumped into the loan so your out-of-pocket expenses are minimal.

Lenders will require an assessment before you are approved to ensure you are financially able to meet the maintenance requirements of a reverse mortgage and pay for home expenses. In all, the process to obtain a reverse mortgage can take up to a few months.