How Does Reverse Mortgage Work?
Wednesday, May 25th, 2011Reverse Mortgage is a type of mortgage loan often insured by FHA (Federal Housing Administration) and is only available to homeowners 62 or older. It does not become due for as long as the senior lives in the home, keep it in good condition and pays property taxes and insurance.
What are the Reverse Mortgage Eligibility?
To be eligible, the homeowner must be at least age 62. The property title must be free and clear of any liens and they should be enough equity in the house. If you are still paying mortgage, the amount must be pay off with the proceeds from the Reverse Mortgage loan at closing. Because you don’t have to make any payments, there are no income or credit score requirements.
Can My Property Be Approve?
Single Family Home, Condominiums, townhouse and 2-4 unit properties can qualify but they have to meet HUD strict standards. Homeowners must own the land below it and the land must be on a permanent platform.
What different ways can I get the money from Reverse Mortgage?
*a Big Lump Sum
* Fixed monthly payment for a period of time or as long as you live in the home.
*Line of Credit is the most popular because of its flexibility.
* Or any combination of the above choice.
You can pullout funds from your account at any moment from the Line of Credit.
Which Lenders offer Reverse Mortgage Loan?
HECM Reverse Mortgage is only offer by the FHA and it is insured. Banks and Reverse Mortgage Lenders offer other Reverse Mortgage products.
Getting a reverse mortgage is a big deal, you must do your research and talk to a HECM Reverse Mortgage counselor.
Here is a list of FHA Approved Reverse Mortgage Lenders:
http://www.hud.gov/offices/hsg/sfh/hecm/hecmlenders.cfm
If you find yourself owing lots of money to creditors or healthcare providers and you have no income because you are retired. You are in need of some money and you have no help. Reverse Mortgage can work a lot better then high interest loans from other places and you will have a places to stay by converting the equity of your home into Cash. This is How Reverse Mortgage Work!
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