A reverse mortgage might be a viable option for you if you're a senior in the United States with goals of home ownership. The idea of having to make monthly mortgage payments can seem daunting in this day and age and in this economy. As you get older and near retirement age, this is especially also true.
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.
Anything you can conceive of can be bought or paid off with a reverse mortgages' proceeds Existing mortgages are required to be financially resolved first before making any other pay-offs though. You should be aware at the outset that not all home types are covered under a reverse mortgage, and other types of homes like mobile homes have to meet special requirements. Some of these requirements include needing to have been constructed after 1976 and also having been approved as a building with a permanent foundation. A third party financial counseling session is also required before a potential homeowner can receive approval for a reverse mortgage.
Reverse mortgages are offered through HUD, also known as the Housing and Urban Development Office of the United States federal government. The current lending limit as of 2009 is $625,500, a figure that has been steadily increasing throughout the past few years. In addition, $6,000 is the maximum a loan originator can charge for a loan origination fee on a reverse mortgage.
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.
Anything you can conceive of can be bought or paid off with a reverse mortgages' proceeds Existing mortgages are required to be financially resolved first before making any other pay-offs though. You should be aware at the outset that not all home types are covered under a reverse mortgage, and other types of homes like mobile homes have to meet special requirements. Some of these requirements include needing to have been constructed after 1976 and also having been approved as a building with a permanent foundation. A third party financial counseling session is also required before a potential homeowner can receive approval for a reverse mortgage.
Reverse mortgages are offered through HUD, also known as the Housing and Urban Development Office of the United States federal government. The current lending limit as of 2009 is $625,500, a figure that has been steadily increasing throughout the past few years. In addition, $6,000 is the maximum a loan originator can charge for a loan origination fee on a reverse mortgage.
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