1. The document provides information about reverse mortgage loans for homeowners aged 62 and older. It explains that a reverse mortgage allows homeowners to convert home equity into tax-free funds without monthly payments as long as they live in the home. 2. The proceeds can be used for any purpose and are disbursed as lump sums, monthly payments, or a line of credit. The maximum loan amount depends on the home value, interest rate, and borrowers' age. 3. Borrowers retain ownership and there are no repayment requirements as long as terms are met, such as paying taxes and insurance. When the last borrower dies or moves out permanently, the loan balance must be repaid.

1. Get the facts
What every homeowner who is at least 62 years of
age should know about reverse mortgage loans
Chris Beard, NMLS# 353274
Reverse Mortgage Specialist
9822 Montague Street ● Tampa, FL 33626
Cell: 813-857-1254 ● Toll Free: 866-684-7868
cbeard@firstbankonline.com
www.GoLocalReverseMortgage.com

2. What is a reverse mortgage loan?
 It’s a home loan that enables you to convert a portion
of your home equity into potentially tax-free funds1
 Unlike a traditional mortgage, you do not need to repay the loan
as long as you or one of the borrowers continues to live in the
home, keep the taxes and insurance on the property current,
maintain the property to FHA standards and all other program
requirements are met
1. Consult a tax advisor
1. Consult a tax advisor
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3. Why get a reverse mortgage loan?
 A reverse mortgage loan can give you access to your home
equity without the burden of monthly mortgage payments as a
traditional mortgage
 Again, unlike a traditional mortgage, you do not need to repay
the loan as long as you or one of the borrowers continues to live
in the home, keep the taxes and insurance on the property
current, maintain the property to FHA standards and all other
program requirements are met
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4. Why get a reverse mortgage loan?
 Reverse mortgage loan proceeds may be used for any purpose,
including:
 Meeting daily or monthly expenses
 Covering healthcare costs
 Remodeling or home repairs
 Consolidating credit card debt
 Refinance your existing mortgage to a reverse
mortgage loan, without making the monthly
mortgage payments of a traditional mortgage2
 With the reverse mortgage loan for purchase feature, the loan
proceeds may be used to help you buy a new primary residence better
suited to your needs
2. Borrower is required to refinance the existing mortgage
balance with the reverse mortgage loan proceeds or own
the home free and clear.
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5. How are the reverse mortgage loan
proceeds disbursed?
Distribution options to receive your reverse mortgage proceeds:
 Lump sum — a specific amount is made immediately available (required with a fixed-
rate reverse mortgage loan)
 Term — funds are released in fixed monthly amounts for a set period requested by the
customer with a variable-rate reverse mortgage line of credit
 Tenure — funds are distributed in equal monthly advances for as long
as at least one borrower continues to occupy the home as a principal residence with a
variable-rate reverse mortgage line of credit
 Line of credit — funds remain available for the borrower to draw on as needed or in
automatic monthly disbursements
 Combination — with a variable-rate reverse mortgage, choose any combination of
lump sum, monthly advances or line of credit disbursements; even receive an initial
lump sum and leave the rest in a line of credit. Change the way proceeds are received
as often as you wish provided sufficient loan proceeds are available.
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6. How much can I borrow?
The amount that can be borrowed is determined by a HUD
formula that is based on the following factors:
 The age of the youngest borrower
 The appraised value
of the home
 The current interest rate
 The established
lending limit
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7. What are the interest rate options?
Both fixed-rate and variable-rate reverse mortgage loans.
 With a fixed-rate reverse mortgage loan, your interest rate will
remain the same throughout the life of the loan
 You would receive a lump sum distribution
 With a variable-rate reverse mortgage loan, the interest rate may
adjust monthly
 The frequency at which your interest rate adjusts — will not affect the
number of loan advances you receive, but will affect how fast or slow
your loan balance grows
 You can change your distribution options as often as you like
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8. How does a reverse mortgage loan
differ from a traditional mortgage?
With a traditional mortgage or home equity loan:
 Borrowers qualify based on their income, employment
and credit score. These loans require the borrower to repay the
amount borrowed by making monthly mortgage payments over a
specified term to the loan servicer.
With a reverse mortgage loan:
 There are no income, employment or credit score qualifying
restrictions.3
3. Reverse mortgage borrowers are required to obtain an eligibility
certificate by receiving counseling sessions with a HUD-approved
agency. Family members are also strongly encouraged to
participate in these informative sessions.
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9. Age and eligibility requirements
 You and any co-borrowers must be at least 62 years of age
 Your home must be your primary residence
 You must own your home free and clear, or the
existing mortgage is required to be refinanced
with the reverse mortgage proceeds
 Educational counseling with a HUD-approved
counselor is required
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10. Reverse mortgage costs
 A deposit for the appraisal is an out-of-pocket cost
 There are additional closing costs which may be financed as part of the
loan such as:
 Title insurance
 Mortgage insurance premiums
 Attorney fees
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11. Reverse mortgage repayment
 You do not need to repay the loan as long as all program requirements
are met, including:
 You or one of the borrowers continue to live in the house
 You keep the taxes and insurance on the property current
 You maintain the property to FHA standards
 The balance due can come from home sale proceeds, or from other
resources such as, personal savings, life insurance or possibly applying
for a new mortgage. There is no requirement the home be sold, only
that the loan be repaid.
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12. Reverse mortgage repayment
 There is no requirement that the home be sold,
only that the loan be repaid.
 If you die and your heirs choose to retain ownership
of the home, the full outstanding loan balance must
be paid. And, there is a possibility that the balance owed may be greater
than the value of your home.
 Because the home is the only collateral attached to the loan, any remaining
home equity, along with your other possessions, belongs to you or your
heirs.
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13. Three essential facts
 Making an educated decision begins with understanding your
responsibilities when applying for a reverse mortgage loan.
Three points you need to be aware of are:
1. You must live in the home as your primary residence.
2. You must stay current on property tax and homeowners insurance
payments and maintain the home to FHA standards.
3. If you or your heirs choose to retain ownership of the home, the full
outstanding loan balance must be paid. Depending on how long the
loan has been in place and market conditions, there is a possibility
the loan balance may be higher than the value of the home.
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14. The reverse mortgage loan process
1. Discuss your home financing goals with a reverse mortgage
consultant.
2. Receive consumer counseling from a HUD-approved
counselor.
3. Meet with a FirstBank Mortgage reverse mortgage consultant
to apply for your loan.
 Fill out an application
 Select a payment plan
 Present required documentation
4. Underwriting and loan decisions take place.
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15. The reverse mortgage loan process
§ Upon approval, a closing is scheduled with all of the required
parties, which may include your lender, your attorney and the
title company representative
 Depending on your state’s laws, you can choose where you
would like the closing to take place, the closing can take place
in the title office, or your home.
 After the 3 day right of rescission, and any existing debt on
your home is paid in full with proceeds from your new reverse
mortgage loan, your remaining loan proceeds are disbursed.
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16. What have we learned?
Who owns the home?
Can the bank take my home?
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17. What have we learned?
Are there restrictions
on how I can use my
reverse mortgage
proceeds?
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18. What have we learned?
Will receiving my reverse mortgage proceeds in monthly
payments affect my Social Security or Medicare benefits?
If you opt to receive monthly payments, they will not affect your Social
Security or Medicare benefits.
However, your eligibility for need-based programs such as Medicaid or
state assistance programs may be impacted. We recommend that you
consult a tax or legal advisor and your local Area Agency on Aging for
more information.
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19. Count on our capabilities
 FirstBank is Tennessee’s largest independently owned and operated
bank, with more than $2 billion in total assets.
 FirstBank has mortgage bankers in 19 locations across the entire
Southeast.
 Reverse mortgage loans are insured by the Federal Housing
Administration (FHA), part of the U.S. Dept of Housing and Urban
Development.
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20. Reverse mortgage loans
I’m ready to listen to your needs and help you understand your reverse
mortgage loan options, so you can make an informed decision.
Chris Beard, NMLS# 353274
Reverse Mortgage Specialist
9822 Montague Street
Tampa, FL 33626
Cell: 813-857-1254
Toll Free: 866-684-7868
FirstBank Mortgage provides a variety of loan products with different rates,
cbeard@firstbankonline.com payments and fees. Please discuss financing alternatives with your mortgage
consultant so that you can select the financing you determine is the most
advantageous for you.
The information in this presentation is accurate as of the date of printing
and is subject to change without notice. 20