Why C2?

C2 Financial allows me to better help you with a reverse mortgage than anywhere else. I hope I can help you discern if a reverse mortgage or (HECM – Home Equity Conversion Mortgage as it is called in the industry) is right for you and your family.

With a reverse mortgage, you can access a portion of the equity you have built up over the years for many uses. It can help you become more financially secure and maintain quality of life through retirement or make a new home purchase.

If you are like most people contemplating a reverse mortgage, you have lots of questions. To assist you I have tried to compile some of the ones I hear the most.

Who is eligible?

         Homeowners who are at least 62 years of age and occupy the property as their principal residence.

HECMS can help you

·      Move closer to family.

·      Increase your retirement income.

·      Cover expenses related to aging.

·      Tax free funds. *** homeowners are still responsible for paying their own property taxes, HOI and association fees.

How is my reverse mortgage paid off?

         Typically, reverse mortgages (HECMs) are paid off in one payment, when the borrowers are no longer in the home. The loan becomes due and payable when the last person on the loan sells the home, vacates the home for twelve full months or the last remaining borrower passes away.  However, delinquent property taxes charges can also cause the loan to become due and payable.

What sources are acceptable for the cash to close?

·      Your savings

·      Gift funds from family

What sources cannot be used for the cash to close?

·      Cash withdrawals from credit cards

·      Bridge loans

·      Loans from a 401K

What properties are eligible?

·      Single family

·      HUD approved condos

·      Planned Unit Developments PUDS

·      2-4 unit properties (one must be owner occupied)

What property types are NOT eligible?

·      Co-ops

·      Second homes

·      Boarding houses

·      Bed and breakfast establishments

I would also suggest that you have probably heard many myths regarding HECM reverse mortgages from welling meaning friends and family. Always get the facts from a reputable lender before proceeding.  Here are several that I hear regularly.

·      I will no longer own my home: Actually, you will retain ownership of your home and your name stays on deed and title. You are only obtaining a mortgage.

·      HECM reverse mortgages are more expensive than traditional mortgages: Costs and fees are regulated and are like traditional mortgages. You can expect to pay origination fees, appraisal fees and recording fees.

·      I won’t have anything to leave to my heirs:  More often than not, there will be funds left for your heirs. Any funds left after the payoff will go to your heirs. 

·      This is a poor person’s loan:  Nothing can be further from the truth in this respect. Many folks use reverse mortgages as part of their strategic financial plans.

·      Equity is my safety net: Equity is not always readily available as cash. Also, it fluctuates in value.  Options to obtain your equity is to sell your home and move to another location, and there is no guarantee it will be less expensive, or you can take a traditional line of credit. However, you will need to qualify for a traditional line of credit (LOC) and prove an ability to pay it back typically on a monthly basis.

My personal philosophy

I founded the Louisville Chapter of the Aging in Place Council and acted as Chairman and President of the Board. Here I learned everything senior related. I have served as Board Chair for several not for profit organizations in Louisville. And, I currently serve on the City Council for Beechwood Village in Jefferson County where I live. I am also a proud member of the Saint Matthews Chamber of Commerce. My personal belief system says we should always give back to the community that gives us so much. My family and I attend Epiphany Catholic Church