Are Social Security and your retirement savings funds not allowing you the financial freedom you always wanted? Then you should seriously consider the benefits of a Reverse Mortgage. Reverse Mortgages have many advantages over regular mortgage loans. They are administered and monitored by the US Department of Housing and Urban Development (HUD), ensuring strict compliance from FHA approved lenders. No proof of income or down payment is required to qualify for any of the Reverse Mortgage Programs available. Best of all, you can continue living in your own home as long as you choose or until the time of your death.
Are Reverse Mortgages available for everyone?
They are not. A homeowner needs to meet the following criteria:
1. They must be 62 years or older
2. They must live in the home
3. They must own their home outright or have a low enough mortgage balance to enable full pay-off of the home at closing with the proceeds of the Reverse Mortgage
4. They must have undergone counseling by an approved HECM (Home Equity Conversion Mortgage) counselor before obtaining the loan
What is the loan process for Reverse Mortgages?
Reverse Mortgages generally have not points; however, there are fees involved. This is why HUD requires counseling for the older homeowner before they approve any of the paperwork for this type of loan. They want to ensure the homeowner understands they are in fact selling their home.
The process itself is much like with any other regular mortgage. Once the home has been appraised and the title work has been done the closing of the loan is scheduled. Any fees are normally financed as part of the loan. After closing the funds are disbursed to the homeowner and a new lien is placed on the home.
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