How Do Reverse Mortgages Work?
To qualify for a reverse mortgage, you must be at least 62 years of age and own your home. If you have equity in your house a reverse mortgage can provide the funding you need while allowing you to stay in your home. You may stay in the house with funds to cover health care costs or other expenses. As a borrower you are to continue to pay the taxes and insurance on the home.
If you own your home, a reverse mortgage loan offers a number of benefits. For many, a reverse mortgage allows seniors to stay in their home rather than downsize. Also, it pays off any existing mortgage so you are no longer have monthly payments.
Meet with a HUD Counselor
Before applying, seniors will meet with a HUD-approved Adviser. These sessions allow the expert to provide an overview of the loan process as well as answer in detail the borrower's common question of "How does a reverse mortgage really work?"
Apply for your Reverse Mortgage
The licensed Reverse Mortgage Consultants can help seniors and their families decide whether or not a reverse mortgage loan is the best option. The reverse mortgage application process is pretty simple and straight forward.
There are no income or credit requirements.
A licensed appraiser will conduct an appraisal. Based on that, the amount an individual will receive as a loan will depend on the value of the home, the age of the homeowner, and current interest rates.
Receive your Reverse Mortgage
Reverse Mortgages are backed by the Federal Housing Administration (FHA),you will have the option of regular monthly payments, a lump-sum advance, or a line of credit.
Reverse Mortgage Eligibility Requirements.
Youngest Borrower must be 62 or older.
Have a single-family home or other approved property.
Must own the property and intend to live in the home as your primary residence.
Can pay off existing loans with proceeds from your reverse mortgage.
Borrower must keep current on taxes, insurance, maintenance, etc.
Loan Amount based on:
The age of youngest borrower residing in subject property
Current Interest rate -Fixed rate or adjustable.
Lesser of appraised value or FHA insurance limit. Currently $625,500
What can a Reverse Mortgage do for you?
Reverse Mortgage News..
4 Ways a HECM Loan Can Help.
A reverse mortgage is a non-recourse home loan that is based upon age and the equity that you have in your home, according to Investopedia, and not your income or creditworthiness. The minimum age that you can apply for one is 62, and repayment typically doesn't start until after you have passed away; unless you sell the house early or violate the terms of the loan, like renting the house out or not using is as your primary residence.
It is not uncommon to be living on a fixed income and a set and restricting budget for many older Americans. But sometimes you may require more cash than is on-hand for one or more reasons. Here are a few examples of where a reverse mortgage might be able to help you...
Free, Objective Reverse Mortgage Information
When you fill out the form above, you will receive a Reverse Mortgage Guide –absolutely free with no obligation! It includes useful information about eligibility and how much money you qualify for.
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How Does a Reverse Mortgage Work?
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