| Reverse Mortgages are designed for homeowners age 62 and older. These types of loans are called “Reverse” Mortgages because the lender pays the homeowner. To qualify for this loan, you must live in the home as your main residence.You do not need to make any monthly payments for as long as you (or in the case of multiple homeowners, the last remaining borrower) continue to live in the home. Homeowners are required to continue to make monthly or other periodic tax and insurance payments, and may risk default if the payments aren’t made. The loan becomes due upon the occurrence of a Specific Maturity Event. Call us for a list of these events. |
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Financial Assessment
Lenders have now begun a Financial Assessment that would qualify borrowers for the
Reverse Mortgage. The lenders just want to make sure that you will be able to pay your
Real Estate Taxes and Property lnsurances going forward.
The purpose of the financial assessment is also to evaluate the borrowers willingness and ability to meet financial obligations and comply with the mortgage requirements as well as to determine whether and under what conditions the borrower meets FHA eligibility criteria.
Please call 888 220-4537 for current Financial Assessment information and how it may affect your qualification for a Reverse Mortgage.
The types of Reverse Mortgages available in the market:
Home Equity Conversion Mortgage (HECM)—This program is offered by the Department of Housing and Urban Development (HUD) and is insured by the Federal Housing Administration. These are the most popular Reverse Mortgages, representing about 95% of the market.
Proprietary Reverse Mortgages
Proprietary Reverse Mortgages Proprietary Reverse Mortgages do exist. A Jumbo Program is available and usually makes sense on a home valued over $1,600,000. Please call for details.
Reverse Mortgages have unique features:
All homeowners must speak with a government approved Reverse Mortgage counselor before their loan application can be processed.Older borrowers receive more money, because lenders include life expectancy in calculating loan proceeds.
The national limit on the amount you can borrow under the HECM program may change from year to year. You can check the current national limit at www.HUD.gov.You now may use a HECM Reverse Mortgage to buy a home. This can make it easier for you to downsize to a house that better suits your needs, or to move closer to family caregivers. Loan closing costs for a Reverse Mortgage are higher than you would pay for a traditional “forward” mortgage.
These include an origination fee, appraisal, and other closing costs (such as title insurance, escrow fees, recording fees). HECM borrowers also pay a mortgage insurance premium.
Would you like more information?
Our expert staff is here to provide you advice and direct answers. Give us a call Toll Free or email jalpino@theseniorequitygroup.com.Call Toll Free 1(888) 220-4537 |
