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Reverse MortgagesReverse mortgages are becoming very important with our senior citizens, to be eligible, you must be 62 years and occupy the home as your primary residence. They were established by HUD (Housing Urban Development) as a way for senior citizens to continue their quality of living with out the burden of a mortgage payment. This program can be an excellent alternative to the prospect of foreclosure. The qualifications required for this kind of mortgage are very different than they are for a conventional mortgage, there is no need to prove income, nor is there a requirement for certain credit score. However, the home owner must demonstrate their ability to pay taxes and insurance and other needed upkeep for the home. It does not require standard
monthly payments. Instead, it is paid when the home is no longer occupied by the
applicant.
How to qualify for a reverse mortgage?
The qualifications requires that the equity in a home is substantial, low balance mortgages are paid
off by the new loan; the House must be your primary residenceand
your muse be at least 62 years old to qualify. An approved counseling
agency must meet with the homeowner to discuss all aspects of the
reverse mortgage and to qualify you.
The counseling agent will make a full assessment to
determine if you meet all of the requirements for this option.
What type of home qualifies?
Residential 1 to 4 unit homes, condominium units that are FHA approved, townhouses
and mobile homes. However the home must be your principal residency.
How is different from a
traditional mortgage?
Requires no monthly
payments. The
amount of money that you will receive depends
on the value of your home, the FHA loan limits for your county and the
interest rate. You
cannot be foreclosed upon. However
you are required to
pay your taxes, home
owners’ insurance
and utility payments on time.
How can the proceeds be used?
Reverse mortgage funds can be use for a
variety of purposes and is strictly up to you , you can use it for home
improvements, medical expenses, to meet unexpected costs or take that
long awaited dream vacation it's
your money. There
is no restriction as to how you use the money you receive from this
loan. At your option, you can choose a lump sum payment or monthly
payments or some other type of structured payout program may be
possible.
How safe is a program”
Those Mortgages are insured by HUD and your
home cannot be taken away from you. Even
if the equity in your home is exhausted you can continue to live in
your home with out being required to make any mortgage payments. However you still will be
expected to pay your taxes, utilities and insurance on the property. For
more information we suggest you visit:
http://www.hud.govFrom Reverse Mortgages page go to page explaining how FHA mortgage can help to stop foreclosure Share with our visitors your concerns, ask questions and advice others to avoid foreclosure Visit us at our Home page
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