Reasons to Consider a Reverse Mortgage Home Equity Conversion Mortgages (HECMs) are the most common type of reverse mortgage.
These loans are available to homeowners who are at least 62 years old and want to finance their primary residence.
This loan is a popular option for eligible homeowners because there are no monthly payments.
In fact, the loan does not have to be repaid until the owner no longer occupies the home.
If the homeowner has enough equity in his home, he can turn it into cash that can be used any way he desires.
Most reverse mortgages today are insured by the Federal Housing Administration, which guarantees that the borrower will never owe more than the value of his home when the time comes for the loan to be repaid.
The insurance also ensures that there will always be available funds for homeowners who have enough equity in their home to receive payments.
Reverse Mortgage Requirements Reverse mortgages do not have minimum income or credit score requirements, so more homeowners are eligible for this loan than other types of financing.
Borrowers must pay an upfront insurance premium, as well as other typical costs associated with home loans.
These costs are usually financed with the loan proceeds so that the homeowner does not have out pay them out of pocket.
In order to remain eligible for this program, the homeowner must pay all of his taxes, keep his insurance up to date, and maintain all repairs on the house.
The amount a borrower can receive varies and depends upon age, the amount of equity in the home, and current rates in the market.
Money can be received in a lump sum, line of credit, monthly payments or a combination to meet your specific needs.
All interested homeowners must complete reverse mortgage counseling, where an independent financial advisor explains all of their options, as well as the loan process.
Reverse Mortgage Purchases Now, the New Homebuyer's Tax Credit can be used in conjunction with a home equity conversion mortgage to purchase a new home as long as the homeowner qualifies for both programs.
This gives potential homeowners an opportunity to obtain up to an $8,000 tax credit in addition to purchasing a home without any monthly mortgage payments.
Speak with a reputable specialist to receive more information about your options.
These loans are available to homeowners who are at least 62 years old and want to finance their primary residence.
This loan is a popular option for eligible homeowners because there are no monthly payments.
In fact, the loan does not have to be repaid until the owner no longer occupies the home.
If the homeowner has enough equity in his home, he can turn it into cash that can be used any way he desires.
Most reverse mortgages today are insured by the Federal Housing Administration, which guarantees that the borrower will never owe more than the value of his home when the time comes for the loan to be repaid.
The insurance also ensures that there will always be available funds for homeowners who have enough equity in their home to receive payments.
Reverse Mortgage Requirements Reverse mortgages do not have minimum income or credit score requirements, so more homeowners are eligible for this loan than other types of financing.
Borrowers must pay an upfront insurance premium, as well as other typical costs associated with home loans.
These costs are usually financed with the loan proceeds so that the homeowner does not have out pay them out of pocket.
In order to remain eligible for this program, the homeowner must pay all of his taxes, keep his insurance up to date, and maintain all repairs on the house.
The amount a borrower can receive varies and depends upon age, the amount of equity in the home, and current rates in the market.
Money can be received in a lump sum, line of credit, monthly payments or a combination to meet your specific needs.
All interested homeowners must complete reverse mortgage counseling, where an independent financial advisor explains all of their options, as well as the loan process.
Reverse Mortgage Purchases Now, the New Homebuyer's Tax Credit can be used in conjunction with a home equity conversion mortgage to purchase a new home as long as the homeowner qualifies for both programs.
This gives potential homeowners an opportunity to obtain up to an $8,000 tax credit in addition to purchasing a home without any monthly mortgage payments.
Speak with a reputable specialist to receive more information about your options.
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