Senior Buffalo residents who either own their home completely or have few payments remaining may qualify for a reverse mortgage. This type of loan allows the borrower to tap into home equity to receive funds from a lender, increasing cash flow during the later years of life. To help you learn more and decide whether this type of loan suits you, our partners at ConsumerAffairs reviewed the best reverse mortgage lenders in Buffalo for seniors.
How to choose a reverse mortgage lender in Buffalo
In 2017 home values in Buffalo rose, and they are expected to continue rising, giving owners more equity. To turn that equity into cash while still living at home, older Buffalo residents may consider a reverse mortgage.
Like a home equity loan or a home equity line of credit, a reverse mortgage allows a homeowner to draw on home equity to receive funds from a lender. But the similarity ends there.
Reverse mortgages, which are available only to homeowners who are 62 and older, give the borrower several different options for receiving cash, including in regular payments from the lender. And, most importantly, the loan does not need to be repaid until the borrower sells the house or dies.
There are many ways to use the proceeds from a reverse mortgage in Buffalo. Residents use reverse mortgages to pay monthly bills, reduce credit card debt, cover medical expenses or invest in home updates. A reverse mortgage can also help you pursue a new financial strategy or even buy another home. Generally, the money from a reverse mortgage is not considered taxable income and will not affect Social Security or Medicare benefits.
There are several different types of reverse mortgages in Buffalo. These include the popular Home Equity Conversion Mortgage (HECM), which is insured by the federal government, as well as privately-backed proprietary reverse mortgages, which can provide more funds than a federally set limit. The qualifications for both are generally the same:
You must be 62 years old.
You must own your home outright or have few payments remaining.
The property must be your primary residence.
You must be able to continue meeting financial obligations such as paying property taxes, insurance premiums and other dues.
You must participate in a government-approved counseling session (HECM only).
When considering a reverse mortgage in Buffalo, take into account not just interest rates from different lenders, but also other costs. Reverse mortgage lenders in New York are allowed, for example, to charge borrowers many costs during origination, such as for a credit report, appraisal and inspection. A monthly servicing fee up to $30 is legal.
You may wish to involve other family members in your decision, as a reverse mortgage can affect inheritance plans. Many reverse mortgages are repaid by heirs selling the home. One of the benefits of HECMs is they are non-recourse loans, meaning the repayable amount will never exceed the sale price of the home. If you choose a private reverse mortgage, such as a jumbo loan, make sure to ask whether it has the same provision.
American Advisors Group is one of the top lenders of Home Equity Conversion Mortgages in the U.S. The company provides a personalized lending experience, offering guidance at each step of the reverse mortgage process. Customers can request a free information kit on AAG’s website to learn more about HECMs and loans for high-value homes. Customers say company representatives are patient with questions and treat clients with respect.
One Reverse Mortgage
OneReverse Mortgage, founded in 2001, is one of the largest providers of reverse mortgages in the country. The company emphasizes strong customer service, promising responses to all client questions within 24 hours. Licensed specialists can help you choose from four different types of reverse mortgages. OneReverse Mortgage has an A+ rating from the Better Business Bureau, but reviews from customers are mixed.
M&T Bank, based in Buffalo, provides guidance at each step of the reverse mortgage process, from the initial discussion all the way through closing. Customers can visit M&T’s website to learn more about reverse mortgages, get answers to FAQs, watch an educational video and request an estimate. M&T, rated A+ by the Better Business Bureau, gets both positive and negative reviews from customers.