The 411 on Reverse Mortgages
If you're a senior in the United States with goals of home ownership, a reverse mortgage might be a viable option for you. In this day and age, and in this economy, the idea of having to make monthly mortgage payments can seem daunting. This is especially also true as you get older and near retirement age.
You'll be relieved, then, to hear that there are little to no upfront payments required with reverse mortgages, and that's what makes them great. The first payment usually isn't even due until after the homeowner's death. If you're someone who anticipates having money in an estate to pay off the mortgage but don't presently have the money to pay it off, a reverse mortgage might be ideal for you.
The potential homeowner must be at least 62 years old to qualify for a reverse mortgage in the United States. There is no specific credit scored required to qualify, or a minimum income requirement, which is what makes them nice. There do however exist requirements. As well as being able to pay for insurance, water, gas, and other home utilities, potential homeowners must be able to afford the home and cover taxes on it.
The money received from the reverse mortgage can be used to pay off virtually anything. If you have an existing mortgage, however, it is required that you pay that off with the funds as well. It should also be noted that some types of homes will not qualify for a reverse mortgage, while other types like mobile homes have special requirements. These can include things like being built after 1976 and being an approved permanent foundation type of building. The potential owner must also go through an approved third party financial counseling session before the reverse mortgage will be approved.
The United States federal government's Housing and Urban Development office, also known as HUD, offers these reverse mortgages. $625,500 is the lending limit as of 2009, although this figure has increased substantially in the past few years. You can also rest assured that a loan originator is not allowed to charge more than $6,000 for your reverse mortgage's loan origination fee.
You'll be relieved, then, to hear that there are little to no upfront payments required with reverse mortgages, and that's what makes them great. The first payment usually isn't even due until after the homeowner's death. If you're someone who anticipates having money in an estate to pay off the mortgage but don't presently have the money to pay it off, a reverse mortgage might be ideal for you.
The potential homeowner must be at least 62 years old to qualify for a reverse mortgage in the United States. There is no specific credit scored required to qualify, or a minimum income requirement, which is what makes them nice. There do however exist requirements. As well as being able to pay for insurance, water, gas, and other home utilities, potential homeowners must be able to afford the home and cover taxes on it.
The money received from the reverse mortgage can be used to pay off virtually anything. If you have an existing mortgage, however, it is required that you pay that off with the funds as well. It should also be noted that some types of homes will not qualify for a reverse mortgage, while other types like mobile homes have special requirements. These can include things like being built after 1976 and being an approved permanent foundation type of building. The potential owner must also go through an approved third party financial counseling session before the reverse mortgage will be approved.
The United States federal government's Housing and Urban Development office, also known as HUD, offers these reverse mortgages. $625,500 is the lending limit as of 2009, although this figure has increased substantially in the past few years. You can also rest assured that a loan originator is not allowed to charge more than $6,000 for your reverse mortgage's loan origination fee.
About the Author:
View Indianapolis Real Estate and also learn more about quality real estate agents in Indianapolis. In addition, we also have a website that allows you to search for Reunion Realtors. These sites will assist with locating real estate.