Benefits of an FHA Reverse Mortgage

by Victoria Belle-Miller

What is an FHA Reverse Mortgage?

FHA reverse mortgages are loans specifically for older homeowners and that are insured by the Federal Housing Administration (FHA). The most common type of FHA reverse mortgage is the HECM or Home equity conversion mortgage. To be eligible for an FHA reverse mortgage, you must be a homeowner who is at least 62 years old and you must be financing your primary residence.

Benefits of an FHA Reverse Mortgage

An FHA reverse mortgage can be very beneficial to you if it is the right loan option for your financing needs. There are no monthly mortgage payments on an FHA reverse mortgage. You can use the money you will save each month on medical bills, home repairs, to pay off other debt, or anything you wish.

If there is sufficient equity in your home, you can use an FHA reverse mortgage to turn that equity into cash. There are different disbursement options for the money that you receive and there are no restrictions on how you choose to spend the money. The amount of money you can receive depends upon your age, the value of your home and current interest rates.

You will never owe anything on your FHA reverse mortgage until you move out of or no longer own the home. The FHA guarantees that the amount that you owe once the loan is due will never be more than the value of your home, as long as you have not fallen behind on insurance, real estate taxes, or repairs. This way, there are no surprises once the loan is due.

FHA Reverse Mortgage Requirements

As an FHA reverse mortgage requirement, you must keep your homeowner’s insurance, property taxes and home repairs up to date. If one of these falls behind, you may have to repay the loan in full. Because there are no monthly payments, there are no income or credit score requirements to be met, which makes it easier to qualify for an FHA reverse mortgage.

The FHA reverse mortgage can only be used on residential property. Before you can apply for the loan, you will be required to participate in FHA reverse mortgage counseling to learn more about the loan to help you decide if it is the right financing option for you. This counseling is a good way to protect senior homeowners from falling victim to mortgage scams.

Now is a great time to apply for an FHA reverse mortgage! If you would like more information about FHA reverse mortgages and their benefits, please contact an FHA reverse mortgage specialist at (877) 267-0274.

Perceived Disadvantages of a Reverse Mortgage Debunked as Misconceptions

by Annie Johnson

Many homeowners have heard of the federally-insured reverse mortgage as it has garnered more attention in the past year than in its entire twenty year history. Many people have written about the perceived disadvantages of a reverse mortgage and have warned seniors against unscrupulous people who seek to take advantage of them. While people like that do exist, it is important to recognize that they exist in any field and are not a disadvantage of reverse mortgages, specifically.

Safety of Reverse Mortgages
Most people who speak only of the disadvantages of a reverse mortgage do not have all the facts about this product or do not fully understand the facts they do have. In fact, the federally-insured reverse mortgage has more consumer safeguards than any other type of mortgage product. Many of the people who speak of the disadvantages of a reverse mortgage are speaking about the proprietary reverse mortgage product and not the federally-insured reverse mortgage that is the most commonly seen today.

Reverse Mortgage Requirements
The federally-insured reverse mortgage allows homeowners aged 62 and above to remain in their home with no monthly mortgage payment for as long as he or she wishes. One thing that has been touted as a disadvantage of reverse mortgages is that the bank will own your home or will kick you out if your mortgage balance exceeds the value of your home. These are both common misconceptions about reverse mortgages and are simply not true.

You will always retain the title to your home with a federally-insured reverse mortgage. Also, no one can ever kick you out of your home simply because of the loan balance. In fact, because the reverse mortgage is federally insured, you are not even held responsible if there is a difference between what is owed on the home and how much it is worth, as long as you have remained current on taxes, insurance, and home repairs.

The disadvantages of a reverse mortgage that are touted by many in the media as truth are, in fact, misconceptions. To find out if a reverse mortgage could help you eliminate your mortgage payments and/or obtain additional funds to supplement your income, call a reverse mortgage specialist today at 877-267-0274!

What a HUD Reverse Mortgage Can Do For You

by Victoria Belle-Miller

HUD Reverse Mortgages Help Older Homeowners

If you are an older homeowner who is looking for a way to supplement your income and save money on your monthly expenses, you should consider a HUD reverse mortgage. A HUD reverse mortgage is a unique type of financing that is insured by the FHA. A HUD reverse mortgage offers several benefits that you may find favorable if you are searching for a good financial solution that will allow you to stay in your home without depleting your savings.

A HUD Reverse Mortgage Can Solve Financial Dilemmas

With a HUD reverse mortgage, you pay no monthly mortgage payments on your home! You can use the money you would have spent on your mortgage on other expenses, such as medical bills, home repairs or anything else you desire. Once the loan is due, and as long as the insurance, real estate taxes, and repairs have been kept up, the FHA insurance guarantees that you will never owe more than the value of your home.

If you have sufficient equity in your home, you can actually receive cash back from your HUD reverse mortgage! The amount of money you can receive depends on your age, the value of your home, and current reverse mortgage rates. There are no restrictions on how you spend the money and you can choose which disbursement option is best for your needs.

How to Qualify for a HUD Reverse Mortgage

To be eligible for a HUD reverse mortgage, you must be at least 62 years old and own your home, which must also be your primary residence. There are no income or credit score requirements, so it is easy for you to qualify. You will be required to participate in HUD reverse mortgage counseling before you can take out the loan to make sure you have all the important information about HUD reverse mortgages so that you can determine if it is the right type of financing for you.

You must stay current on your homeowner’s insurance, property taxes and home repairs in order to meet the requirements of a HUD reverse mortgage. If any of these requirements are not met, you will be required to pay back the loan in full right away. Otherwise, you will not pay back the loan unless you move or no longer own your home.

If you would like to benefit from the multiple advantages of a HUD reverse mortgage, please contact a reverse mortgage specialist at (877) 267-0274 to learn more information!

Reverse Mortgage for Seniors Information

by Victoria Belle-Miller

Reverse Mortgages for Seniors are Beneficial

As an older homeowner, you want to be able to maintain the lifestyle you had prior to your retirement. With the rising cost of living and with changes in social security benefits, life savings and/or other government aid, maintaining your previous lifestyle can be a difficult thing to do. A reverse mortgage for seniors can provide you with a source of funds that will allow you to stay in your home and still be financially independent.

How a Reverse Mortgage for Seniors Works

A reverse mortgage for seniors is a unique type of home loan that does not require you to make any monthly mortgage payments toward your reverse mortgage. As long as you meet the requirements of the reverse mortgage and live in your home, you will not owe anything to the reverse mortgage lender. You can use the money that you would have spent on mortgage payments for all of your other expenses, including medical bills, house repairs or even to pay off other debt you my have.

If there is sufficient equity in your home, as determined by an appraisal, a reverse mortgage for seniors can be used to covert that equity to cash. The money your receive from your reverse mortgage is tax-free and there are no restrictions on how you use your money. There are different disbursement options you can choose from and the amount you can receive depends upon your age, the value of your home, and current interest rates.

Reverse Mortgages for Seniors Eligibility

To be eligible for a reverse mortgage for seniors, you and anyone else on the home’s title must be at least 62 years old. You must also be financing a residential property that is your primary residence, which means you live there at least six months out of the year.

Reverse mortgages for seniors do have certain requirements. You must stay current on your homeowner’s insurance, property taxes, and home repairs; if you do not, you may be required to repay the loan in full. You are also required to attend reverse mortgage counseling before you can take out a reverse mortgage. The counseling will cover the terms reverse mortgage and all of your options so that you are well informed before getting a reverse mortgage.

There are no income or credit score requirements for a reverse mortgage, so it is easy for you to qualify. Reverse mortgages for seniors are insured by the FHA and you will never owe more than the value of your home once the loan is due. With all of the benefits a reverse mortgage for seniors has to offer and with current low rates, now is a great time to apply for a reverse mortgage! Contact a reverse mortgage specialist at (877) 267-0274 to learn more!

Learning More About Reverse Mortgages

by Annie Johnson

If you are a senior homeowner who is curious about reverse mortgages then you know how hard it is to obtain accurate information from a trusted source. Unfortunately, many news sources cannot be trusted to report accurate and complete reverse mortgage information or give appropriate advice about reverse mortgages. The truth is this: A reverse mortgage is not for everyone, but it can help many people live more comfortably during their retirement and cover daily expenses.

About Reverse Mortgages: Eligibility
One of the first and most relevant things to understand about reverse mortgages is reverse mortgage eligibility. In order to qualify for a reverse mortgage, all homeowners must be at least 62 years of age and they must live in the home that they own. The amount of equity needed to qualify for a reverse mortgage without having to bring any money to closing varies, but generally equals 40-60% of your home’s value, depending upon your age and the value of your home.

About Federally Insured Reverse Mortgages
Also important to know about reverse mortgages, specifically the federally-insured version, is that it is non-recourse. What this means is that, as long as you remain current on your obligations, you can never owe more on the home than the fair market sale value. With the federally-insured reverse mortgage, a homeowner’s obligations consist of remaining current on homeowner’s insurance, real estate taxes, and home repairs.

Is A Reverse Mortgage Right For Me?
A reverse mortgage could help many home owners eliminate their mortgage payments and supplement their monthly income. The key to making the right choice is to avoid potential misinformation and use proper resources in order to obtain factual reverse mortgage information.

To learn more about reverse mortgages, how much you can receive, and what your alternatives are, call a reverse mortgage specialist today at (877) 267-0274!