About AFC Reverse Mortgage
Reverse Mortgages are our only business
At AFC Reverse Mortgage, helping senior homeowners to locate cash in their homes through an FHA insured Home Equity Conversion Mortgage (HECM) is our only business and our experienced staff has processed and closed hundreds of FHA HECM loans since 2003 through our local office. That's called in house processing and closing and it means you will experience the convenience of working with the same people in our local office from the initial meeting right through closing. Since we control the process, our loans close typically within three weeks after counseling. And we close in your home. At AFC you truly are a name not a number. AFC Reverse Mortgage. Local. Knowledgeable. Professional. Experienced. Convenient.
We will meet with anyone at any time to discuss a reverse mortgage and encourage our customers to include their friends, relatives and trusted advisors in any discussion with us. All in-home consultations are free with no-obligation. Our goal is that you fully understand the program, make an informed decision, and, should you decide to proceed, that there are no surprises at the closing.
The President of AFC Reverse is a former Marine Officer, and an attorney with a background in mortgage lending and estate planning. Mr. Krajsa has over 25 years of mortgage lending experience and has been working with FHA loans since 1996 and with FHA HECM reverse mortgage loans since 2002.
Reverse Mortgage Examples
An 84 year old woman had social security income, modest savings, and a free and clear house worth $62,000. She wanted to stay in her home. She could handle her monthly expenses, but did not have cash for $3,000 of roof repairs or to visit her daughter in California. A reverse mortgage offered her tax free income for life of over $300 per month for life or a lump sum of over $38,000. She chose to combine a lump sum of $3000 with a monthly tax free income for life of over $270.00. The additional income will permit her to visit her daughter in California.
The son of an 84 year old woman needed financial assistance. His Mother lent him the $47,000 lump sum proceeds from a reverse mortgage on her $90,000 home. He is now paying her back, but she has the comfort of knowing that even if he were to fall behind in his payments, her house is safe since there are no payments due on the reverse mortgage.
A couple in their early 70's with a $175,000 home qualified for a lump sum reverse mortgage of $106,000 or monthly income of $670 for life. They used $30,000 to buy a new car and some other items, and have improved their lifestyle with a monthly income of $469 from the reverse mortgage. (They could elect to reduce their monthly income and draw down on the remaining $76,000 lump sum at any time.)
A retired professional in his late 70's and with a free and clear home worth in excess of $475,000 qualified for a lump sum reverse mortgage of $205,000 or $1600 monthly income for life. He used $50,000 for home improvements, and now has a monthly income for life in excess of $1200 from the reverse mortgage.
Your safeguards
- Borrower name remains on title
- No payments to make until all borrowers move or the home is sold.
- Required Counseling (AARP or Counseling Agency approved by FHA or Fannie Mae)
- Borrower will never owe more than the loan balance or value of property, whichever is less (Non-recourse).
- No debt passes to heirs.
- FHA guarantees income for life even if your house declines in value
- FHA limits the fees that can be charged
PBS Channel 39 News Report
A look at Reverse Mortgages with PBS Channel 39 News:
What's My Next Step?
There are typically four steps to getting your reverse mortgage:
I. Learn About Reverse Mortgages
First learn as much as you can about reverse mortgages. If you contact us, we will answer any questions you may have over the phone, and can schedule an initial informative free consultation with the borrower(s) and any interested family members, friends, or advisors in the family home to explain reverse mortgages, and all without any obligation on your part. Federal law prohibits lenders from proceeding with the loan until after the borrower(s) have completed the next step - counseling, and we will not ask for a commitment or for the borrower to sign anything until the borrower(s) have completed their counseling and have decided to proceed.
II. Counseling
Next, you'll have a counseling session with a FHA/HUD approved independent Reverse Mortgage counselor. Counseling is a consumer protection feature of the FHA Reverse Mortgage program to make sure borrowers understand the program. We will provide you with a list of counselors or you can find them on the FHA website. You choose and contact the counselor. The borrower(s) and anyone else they choose (other than a lender) may attend the counseling. Counseling can be done face to face or by phone. It usually takes less than an hour. Lenders are not permitted to participate in the counseling.
III. Loan Disclosures and Appraisal
When you have completed your counseling, we will come to your home to have the initial paperwork signed, including the loan application and other required mortgage disclosures. We will also have an FHA approved appraiser contact you to appraise your home.
IV. Loan Closing
Finally, we schedule your loan closing. The loan is usually closed in your home, frequently in as little as 3 weeks after counseling. Since this is a federally related mortgage loan, rescission applies, and the borrower(s) have the right to cancel the Reverse Mortgage as late as three business days AFTER the closing.
For more information, contact:
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AFC Reverse Mortgage Phone: 201-286-9752 |