Reverse Mortgage Information
Question by cool: 62 years old ,retired and a home owner with home owners insurance. Can she apply for a reverse mortgage?
For A 62 years old ,retired and a home owner with home owners insurance. Can she apply for a reverse mortgage loan or any other debt consolidation loan?
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Article by 2ndhome Specialist
Do you have clients who want to buy a second home but who are hesitant given the current market conditions? Now you can offer your clients another solution when it comes to financing their dream vacation home,. The answer: reverse mortgages.
New data from the Department of Housing and Urban Development (HUD) reveals that more than 300,000 seniors have used the federally insured Home Equity Conversion Mortgage or Reverse Mortgage, to convert the equity in their homes into cash without having to move. Even though this is a significant number, it represents only about one percent market penetration. In the first quarter of 2007 alone, there was a billion increase in senior home equity. This increase was reflected in a 0.4 percent increase in the Reverse Mortgage Market Index (RMMI) to 205.6 from 2o4.7 in the previous quarter.
Article by Terry Edwards
Are you considering an FHA reverse mortgage loan on your home? While there are many advantages to these types of loans, there are also some things you must know before moving forward with this loan.
FHA stands for the Federal Housing Administration, which is a branch within the United States Department of Housing and Urban Development (HUD). In order to qualify for this mortgage program, their are certain requirements the FHA has set. One of those is that the homeowner must be at least 62 years of age, or older.
Article by Robin Brain
For many, reverse may be loans for the desperate while for others it could be a trade for the home ownership. For yet others it could be free money received from the government or such other entitlement programs. But in reality, reverse is none of these.
What is Reverse?Broadly speaking reverse is just an equity home loan and is aimed at deferring the interests. It is not refinance as some people think but a way of deferring the repayments till the maturity of the loan.
Building a program to help provide funds for seniors, the FHA reverse mortgage program has fast become the standard for reverse mortgages. The most common type of reverse mortgage today is the FHA Home Equity Conversion Mortgage, or HECM. Because the HECM is federally insured, the borrower and lender receive special protections, unlike other loans. Some prospective reverse mortgage applicants wonder if the downturn in the economy, specifically in the housing market, will affect a senior’s chance of qualifying for a reverse mortgage. Because the mortgage is federally backed, borrowers can rest assured that a current reverse mortgage, even if the value of the home declines, will still be covered by the Federal Housing Authority. Likewise, the lender is insured against decreases in the home value amount. A New Hampshire reverse mortgage lender can offer historically low rates based on these HECM guarantees. Massachusetts reverse mortgage interest rates are incredibly low right now because lenders are backed by the FHA reverse mortgage program. If the house loses value or the senior-occupied home cannot cover the cost of the reverse mortgage loan, then the insurance part of the FHA HECM will come into effect and pay the difference. Seniors should be very cautious when evaluating a New Hampshire or Massachusetts reverse mortgage where lenders are pushy and cannot show proper proof that they are certified by the FHA as a reverse mortgage lender. In the past, lenders offered proprietary reverse mortgages where the bank took on the risk if the home lost value. In these circumstances, the bank charges much higher interest fees in order to protect itself, but the bank cannot request the change in value from the borrower; the bank must pay the difference itself. For seniors seeking a reverse mortgage, the FHA reverse mortgage program is the best choice in the current market until home values stabilize, but this doesn’t mean that reverse mortgages aren’t good vehicles to help fund immediate needs.
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