A reverse mortgage is a loan that
is available to seniors who are 62 years or older in USA. This is used
to convert the home equity to cash - either lump sum or periodic
payments. The homeowner does not need to repay this loan unless the
house is sold, the house is no longer the senior’s primary residence
or the owner dies. The owner cannot rent or lease the house. To
qualify, the owner must own the home after the loan is paid off or a
major portion of the loan is paid off.
1. How to get started on obtaining a reverse mortgage?
You can receive free information about reverse mortgages by calling
AARP at 800-209-8085. You can also obtain free information by
contacting the Housing Counseling Clearinghouse at (800) 569-4287 for
the contacts of a HUD-approved counseling agency and a list of
FHA-approved money lenders in any area.
2. Are all types of homes eligible to receive reverse mortgages?
Single family homes and multi-units that four or less units with one
of the units occupied by the owner.
3. Can the money lender take away the home if loans are very high?
No, as long as the owner lives in the home, the bank cannot take away
the home since the taxes and insurance payments are paid off and not
delinquent. Loans higher than the value of the home will not be given
to the homeowner so there is no concern of very higher.
4. What is the total amount of money the homeowner can receive?
The amount of loan depends on the lesser of the appraised value of the
home or the FHA limits in the area of the home, current interest rates
and the age of the homeowner. The older the homeowner, lower the
interest rates.
5. How are the payments received?
Following are the options for receiving the payments:
(a) Line of credit: Payments in installments of amounts and time
period determined by the homeowner until the total credit is
exhausted.
(b) Tenure: The homeowner will receive equal monthly payments as long
as the owner lives in the house and the total credit is exhausted.
(c) Modified Tenure: Somewhat similar to tenure. This is a line of
credit with monthly payments as long as owner remained in the home.
(d) Term: The owner receives equal monthly payments for fixed number
of months.
After the reverse mortgage is setup, there are no restrictions on how
the money is spent. The homeowner borrower has the option of putting
all the money into investments, or they can simply take the money and
spend it as they want. It is highly recommended that you contact AARP
at 800-209-8085 for more detailed information and also Housing
Counseling Clearinghouse at (800)569-4287 for the contacts of a
HUD-approved counseling agency and a list of FHA-approved money
lenders in any area.
Reverse mortgages are becoming more popular with the slumping economy.
Many seniors are collecting the reverse mortgages. When the senior
moves into an assisted living, they have to sell the home as that is
the only option. The house cannot be rented or leased out or be
occupied by the other family members without paying off the loans.
For more information contact
your Lake Norman Lake Realty Broker or contract
Integrity First Mortgage Loans at
www.lakenormanloans.com |
