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A reverse mortgage is a mortgage loan, usually secured by a residential property, that enables the borrower to access the unencumbered value of the property. The loans are typically promoted to older homeowners and typically do not require monthly mortgage payments. borrowers are still responsible for property taxes and homeowner’s insurance.
Do you know that if you are 62 years or older you may be able to buy a house or a condominium using a reverse mortgage? A reverse mortgage allows you to get money from a lender, but you do not have to.
Private Reverse Mortgage Lenders The federal housing administration runs a government-insured reverse mortgage program that uses private lenders to extend reverse mortgage loans. The primary benefit of FHA reverse mortgages is that.Minimum Age Requirement For Reverse Mortgage Although the minimum age requirement is 62, the older you are when you apply for a reverse mortgage, the higher the maximum loan amount you can borrow. Buying A Home That Has A Reverse Mortgage One alternative is to buy their new home with a reverse mortgage.
A reverse mortgage is a loan for seniors age 62 and older. HECM reverse mortgage loans are insured by the Federal Housing Administration (FHA) 1 and allow homeowners to convert their home equity into cash with no monthly mortgage payments. 2
In short, a reverse mortgage loan allows persons age 62 and older to convert the equity of their home into cash they can use for whatever they choose. All reverse mortgages convert your home’s equity into three things: Loan advances paid to you; Loan fees and costs paid to lender and others
A reverse mortgage can use up the equity in your home, which means fewer assets for you and your heirs. If you do decide to look for one, review the different types of reverse mortgages, and comparison shop before you decide on a particular company.
Reverse mortgages are increasing in popularity with seniors who have equity in their homes and want to supplement their income. The only reverse mortgage insured by the U.S. Federal Government is called a Home Equity Conversion Mortgage (HECM), and is only available through an FHA-approved lender.
Reverse mortgages are home equity loans available to homeowners over 62 – and the downsides to taking one out might not just affect you, but could also impact your heirs.
Senior Reverse Mortgage Services is a reliable provider of reverse mortgages for seniors in Texas. We offer premium reverse mortgage services to all of our clients with a focus on giving the best services and products based on individual needs.
· Reverse mortgages have skyrocketed in popularity among cash-strapped seniors. But carefully weigh the pros and cons, and alternatives, before taking this unique type of loan.