Reverse Mortgage Tips

Reverse Mortgage Tips – Many older homeowners who saw their retirement accounts decrease, are struggling in this economy. “Reverse Mortgages” can provde a lifeline. According to experts, these loans which are only available to age +62 seniors in order to get by with extra spending money.
The original limit a homeowner could get in a reverse mortgage was $417,000, but President Obama increased the limit for one year up to $625,000 and just approved an extension into next year. And the aging population is becoming more and more aware of reverse mortgages as a way to stay in their homes and not have to make payments and have extra money for anything they want.
The difference between a reverse mortgage and traditional home loan is instead of making monthly payments you can choose to receive them. That’s the “reverse” part of a reverse mortgage.
Besides being over 62, other requirements are that the home must be owned free and clear or have a remaining mortgage balance that can be paid off by the reverse mortgage. The home must also meet Department of Housing and Urban Development minimum property standards.
Reverse Mortgages have specialized processes that needs a lot of attention and more work than a traditional mortgage.
Eligibility requirements are simple. There are no income, employment or credit score qualify restrictions. The amount that can be borrowed is determined by a HUD formula based on age, appraised value of the home, current interest rate and established lending limit.
Reverse Mortgage Counseling – Seniors must go through counseling as part of the application for a reverse mortgage and receive a certification of completion. The mortgage companies have to make sure that all the ramifications and options are clearly explained because HUD believes the extra protection for some one over 62 years old is needed.

Reverse Mortgage Tips – Many older homeowners who saw their retirement accounts decrease, are struggling in this economy. “Reverse Mortgages” can provde a lifeline. According to experts, these loans which are only available to age +62 seniors in order to get by with extra spending money.

The original limit a homeowner could get in a reverse mortgage was $417,000, but President Obama increased the limit for one year up to $625,000 and just approved an extension into next year. And the aging population is becoming more and more aware of reverse mortgages as a way to stay in their homes and not have to make payments and have extra money for anything they want.

The difference between a reverse mortgage and traditional home loan is instead of making monthly payments you can choose to receive them. That’s the “reverse” part of a reverse mortgage.

Besides being over 62, other requirements are that the home must be owned free and clear or have a remaining mortgage balance that can be paid off by the reverse mortgage. The home must also meet Department of Housing and Urban Development minimum property standards.

Reverse Mortgages have specialized processes that needs a lot of attention and more work than a traditional mortgage.

Eligibility requirements are simple. There are no income, employment or credit score qualify restrictions. The amount that can be borrowed is determined by a HUD formula based on age, appraised value of the home, current interest rate and established lending limit.

Reverse Mortgage Counseling – Seniors must go through counseling as part of the application for a reverse mortgage and receive a certification of completion. The mortgage companies have to make sure that all the ramifications and options are clearly explained because HUD believes the extra protection for some one over 62 years old is needed.

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Published by Sebastian on Jan 21st, 2010 in Uncategorized

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