Reverse Mortgage in Marion, VA

For some Marion homeowners in retirement, home equity is their largest asset, and a reverse mortgage is one way to turn part of it into cash while staying in the house. It carries real tradeoffs: the balance rises, interest and fees add up, and you must keep paying property taxes, homeowners insurance and upkeep. Here is a balanced look at the federally insured HECM and what to ask before you apply.

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Call to speak with a licensed loan officer about reverse mortgage in Marion. Programs vary by borrower, property and investor.

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Older homeowners in Marion

42%Owner households 65+

52%Homes with no mortgage

$172,500Median home value

0Reverse mortgages in Smyth County (2024)

In Marion, 42% of owner-occupied homes are headed by someone 65 or older, and 52% of owner-occupied homes have no mortgage. Lenders reported 0 reverse mortgages in Smyth County in 2024.

How a HECM reverse mortgage works

With a traditional mortgage, you pay the lender each month and your balance falls. With a reverse mortgage, the lender advances money to you, and the balance rises as interest, mortgage insurance and any fees are added. You keep title to the home.

No monthly principal and interest payment is required while at least one borrower lives in the home as a primary residence and meets the loan terms. You may make voluntary payments if you choose. The loan generally becomes due when the last borrower sells, moves out for an extended period or passes away. How much you can access depends on the age of the youngest borrower, the home value and other factors set by HUD and the lender.

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Prefer to talk first? Call (888) 912-6746. Applying is not a loan approval or commitment to lend; programs vary by borrower, property and investor. ClearPoint Mortgage Advisors, NMLS #173855. Properties in FL, NY, NJ, PA, CT and VA only.

Counseling first, then payout choices

HUD requires every HECM borrower, and in many cases a non-borrowing spouse, to complete a session with an independent HUD-approved housing counselor before applying. The counselor explains costs, alternatives such as downsizing or a home equity loan, and how the loan could affect your estate and public benefits. You receive a certificate when you finish.

Once you move forward, you choose how to receive funds. Options can include a lump sum, fixed monthly advances for as long as you live in the home, monthly advances for a set period, a line of credit or a mix. Availability depends on the loan structure, and some choices limit how much you can draw in the first year.

Who this tends to fit

You can comfortably keep paying property taxes, homeowners insurance and maintenance
You are married and want to understand protections for a spouse who is not on the loan
You have discussed the impact on your estate with your heirs or family
You have significant equity and want to supplement retirement income
You are a homeowner aged 62 or older buying a new primary residence through HECM for Purchase

Your ongoing duties and what happens to the home in Marion

A reverse mortgage does not relieve you of homeownership costs. You must keep paying property taxes, homeowners insurance and any flood insurance or association dues, and you must maintain the home in reasonable repair. Falling behind on these obligations can put the loan into default and may lead to foreclosure. Lenders review your finances during the application to judge whether you can keep up, and some borrowers are required to set aside funds for taxes and insurance.

When the loan comes due, the home is usually sold to repay it, or heirs may pay it off and keep the property. HECMs are non-recourse loans, so the amount owed generally cannot exceed the home's value at the time it is sold.

Before you call

Questions about heirs, estate plans and any public benefits you receive
Your HUD-approved counseling certificate, or a plan to schedule the session
A list of monthly obligations so the lender can review your ability to keep up with home costs
Notes on how you would prefer to receive funds: line of credit, monthly advances, lump sum or a mix
Income documents such as Social Security, pension and retirement account statements

Questions Marion borrowers ask about reverse mortgage

Why is HUD-approved counseling required?

A reverse mortgage is a complex decision with long-term effects on your finances and estate. HUD requires a session with an independent, HUD-approved counselor before you apply so you understand how the loan works, what it costs, how the balance grows and what alternatives exist. The counselor does not work for the lender. You will receive a certificate showing you completed counseling, which the lender needs before moving forward.

What happens to my home when I pass away?

The loan generally becomes due when the last borrower dies or permanently leaves the home. Your heirs can sell the house and keep any proceeds beyond the loan balance, pay off or refinance the loan to keep the property, or turn it over to the lender. Because a HECM is non-recourse, heirs are generally not personally responsible if the home is worth less than the balance owed.

Is reverse mortgage money mine to keep without repaying it?

No. A reverse mortgage is a loan. Interest, mortgage insurance and fees are added to the balance over time, so the amount you owe grows and the equity left in your home shrinks. The loan must be repaid when it comes due, usually through the sale of the home. It can be a useful tool for some homeowners, but it uses up equity that might otherwise go to you later or to your heirs.

Will a reverse mortgage affect my government benefits?

Loan proceeds are generally not treated as income, but how they interact with needs-based benefits such as Medicaid or Supplemental Security Income depends on how and when you use the funds. Money kept in a bank account could count as an asset. Social Security and Medicare are generally not affected. Ask your HUD-approved counselor, a benefits specialist or an elder law attorney, and for tax questions talk to a tax professional.

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Get answers about reverse mortgage for a home in or around Marion. Subject to credit approval; programs vary.