What every Senior Citizen should know? How Does Reverse Mortgage Work?

Reverse Mortgage is a type of mortgage loan often insured by FHA (Federal Housing Administration) and is only available to homeowners 62 or older. It does not become due for as long as the senior lives in the home, keep it in good condition and pays property taxes and insurance.

What are the requirements for Reverse Mortgage?

You must be at least 62 or older. There have to be enough equity in the home and the titles of the house must be FREE of any liens to be approve. If you still owe money on the mortgage, you must pay off the balance with the disbursement when the Reverse Mortgage Loan closed. There are no income or credit checks required because you don\’t need to make any payments, The Lenders will pay you.

Does My Home Qualify?

All different properties from Single Family Residence, 2-4 units, condos, townhouses and manufactured homes can be approve. But first you must talk to a Reverse Mortgage Loan Counselor, and all properties must meet HUD standards. Especially mobile homes, they had to be built within the last 30 years and on a concrete foundation.

What are the preferred methods of Reverse Mortgage Loan Disbursement?

*a Big Lump Sum

*Receive monthly payment like income for a fixed period or as long as you live.

*Line of Credit is the most popular because of its flexibility.

*of course, you can combine any method as you wish. There will be a servicing fee for updating the loan.

The most popular option by far is the line of credit because you can withdraw proceeds of the loan at any time.

Which Lenders offer Reverse Mortgage Loan?

Many banks, FHA or Reverse Mortgage Brokers offer this product, but the HECM Reverse Mortgage is one with lowest cost and it is insured by the Federal Government.

You must educate yourself about Reverse Mortgage and get as much input as you can.

Here is a list of FHA Approved Reverse Mortgage Lenders:

http://www.hud.gov/offices/hsg/sfh/hecm/hecmlenders.cfm

If you or your family is having financial issues, (credit card debts, medical bills, etc) and you have no other means to pay the bills, but you own the home you live in. Reverse Mortgage is a viable option. You can convert the equity in your home without have to sell the property or give up title and this is How Reverse Mortgage Work?

Learn more about How Does Reverse Mortgage Work?. Stop by Matt Finn\’s site where you can find out all about Reverse Mortgage Loan and what it can do for you.