Reverse Mortgages

Click Here for Reverse Mortgage Articles & Information

With medical and living expenses higher they have ever been before many senior citizens have a strong case of financial uncertainty. Many hard working homeowners have always dreamed of an amazing retirement, but due to our economic crisis this has caused a major road block in many peoples lives. With a reverse mortgage an elderly homeowner can take out a loan to help pay for medical expenses or other debts they have acquired.

What exactly is a reverse mortgage?

A reverse mortgage is an FHA mortgage that will only be offered to elderly borrowers. The lender will offer a loan based off the amount of equity the homeowner has built up in the home. This type of mortgage is also not taxable to the borrower and generally does not affect ones eligibility for Medicare or SS benefits. This type of mortgage is available to almost anyone over 62 and is an excellent choice if you are in need of cash. Unlike a regular second mortgage or home equity loan, there is no payment required until the homeowner no longer uses the property as their primary residence.

Who qualifies for this type of mortgage?

Guidelines from the Federal Housing Administration (FHA) require that the homeowner must be at least sixty-two years old to qualify for this type of loan. No credit or income guidelines are going to required for the approval of this loan. Also, almost every type of home can qualify for a reverse mortgage without having to meet certain requirements. Except for mobile home loans because these must be permanently placed on foundation, established in the past 30 years, and also must pass the FHA home inspection.

How can the homeowner use this money?

The cool thing about this type of mortgage is that the cash can be used anywhere from paying off old debts to traveling and living their dreams. Below listed are some ways borrowers choose to spend this cash:

• Settling debts they have acquired such as credit card, mortgage, and medical debts.
• Needed home repairs or remodeling
• Traveling
• Hobbies
• Health Care
• Education
• Other

The total amount that can be loaned is based off of the value of the property, interest rates, borrowers age, and the local FHA lending limitations. Younger homeowners are going to receive much less of their equity than older borrowers. Funds for this loan can be received by monthly payments, a lump sum, or a line of credit.

Does this loan require any costs?

A reverse mortgage indeed charges for closing costs and origination fees, but unlike most mortgages, these fees can be paid through the process of the loan. Please be very wary of any company charging thousands of dollars for information about this service.

Reverse Mortgage Articles:

• Financial Regulators Adopt Guidance on Reverse Mortgages
• Pennsylvania Implements New Policy on Reverse Mortgages to Help Protect Seniors
• National Reverse Mortgage Lenders Association 2010 Road Show comes to Irvine, CA
• Reverse Mortgages May be the Answer for Struggling Seniors
• If a owner of a home with a reverse mortgage dies, does the family have to leave?
• Dangers of Reverse Mortgages
• Generation Mortgage Offers New Jumbo Reverse Mortgage Loan for Homes up to $6 Million
• Senator McCaskil: Reverse mortgages may become the next sub-prime mortgages
• One Reverse Mortgage Announces Personalized Approach to Reducing Costs Associated With Reverse Mortgages
• Arizona Reverse Mortgages to be Regulated
• Four Factors Seniors Should Keep In Mind Before Applying For A Reverse Mortgage
• FTC Submits Comments on Proposed Guidance to Help Consumers Avoid Reverse Mortgage Deception
• Reverse mortgage pros and cons
• What is a reverse mortgage?