Can I Do A Reverse Mortgage If My Home Is In A Trust?

A reverse mortgage can be obtained if the home is in a trust, but this issue must be reviewed with a lender before receiving a definitive answer.

Reverse Mortgage for a Home in a Trust

When a home is vested in a trust, the homeowners will be asked to provide the document or have their trust attorney provide the necessary certified information to the lender. Each homeowner’s mortgage in a trust must be reviewed by the lender before being approved for a reverse mortgage. The reverse mortgage lender will need to verify that there is nothing in the trust document that would negate their claim of rightful ownership at the end of the reverse mortgage agreement.

Outline of a Reverse Mortgage

Senior homeowners who are at least 62 years old are entitled to apply for a reverse mortgage. The property must be used as their primary residence, and taxes, insurance, and home maintenance are the homeowner’s responsibility. Credit scores and income verification are not involved in being approved for a reverse mortgage. The home must meet FHA approved single family dwellings such as; condominiums, 1-4 unit structures where the homeowner resides in one unit and some mobile and manufactured homes. The senior applicants must also attend a consumer counseling session with a reverse mortgage counselor. This meeting ensures that the homeowners understand the terms of the agreement before entering into this type of mortgage.

Reverse Mortgage Benefits

Seniors benefit financially when receiving money from the equity that has accrued in their home over years of making mortgage payments. This equity is paid directly to the homeowners in various ways to include; monthly payments until the homeowners leave the residence, or a predetermined number of monthly payments, a line of credit, or one lump sum amount. Reverse mortgages equal financial freedom.

Related posts:

1. Can Title To A Reverse Mortgaged Home Be Placed In A Living Trust?
2. Is A Home In A Living Trust Be Eligible For A Reverse Mortgage?
3. Can Title To A Reverse Mortgage Home Be Placed In A Living Trust?
4. Will A Trust Protect A House If There Is A Reverse Mortgage?
5. Can A Trust Protect A House If There Is A Reverse Mortgage?

This entry was posted on Wednesday, February 24th, 2010 at 4:19 pm and is filed under reverse mortgage. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.