When applying for a traditional mortgage, you have to demonstrate sufficient income and assets -- as well as overall creditworthiness -- to qualify for a loan. Because a reverse mortgage pays out based on the equity homeonwers have already built up in their home, they don't have to worry about monthly income or total assets (other than the residence in question).
To qualify for a reverse mortgage applicants must be over 62 years old and must have paid off all or most of their mortgage (the reverse mortgage will pay off whatever is left of their original mortgage before qualified applicants receive any money, so if they have a large balance on that mortgage, a reverse mortgage won't work for them). They must also meet with a HUD-approved counseling agency before signing up. Their home can be any single-family residence, including a condominium or mobile home, as long as it's their principal residence.
this is a great resource for those who are looking for reverse mortgage information we have built a website which is dedicated to teaching seniors about reverse mortgage you can visit it to learn more http://www.reversemortgagelendersdirect.com/ http://www.reversemortgagelendersdirect.com/reverse-mortgages-how-they-work/ http://www.reversemortgagelendersdirect.com/reverse-mortgages/ this is a tricky loan with many features - we know them inside & out - so any seniors who want more information can find our contact information in the site
Hugs Steve Dale
We got reverse mortgage to save our home as due to economy our construction business went down the tubes. At signing last Sept 09 they insisted I be removed from title because I was not 62 yet. Now the unthinkable happened and in April2010 my husband suddenly dropped dead of brain bleed. NOW they are throwing me out of my home of 33 years to the street. Just want people to know how ruthless they are! Any advice I can get from attorney on this matter would be appreciated. The home was willed to me Trying to sell but Whos buying No one can qualify so far. HELP!
Prayers rmlddotnet
One of the reasons reverse mortgages had a bad reputation previously was because of equity sharing. Equity sharing is when a lender or investor owns part of any future increase in the value of your property. The FHA government program does not have equity sharing, and for the most part you should run from programs looking to share in the future equity of your home. There is a stimulus package available which is allowing a national maximum claim of $625,500 for most of the United States. This means you can use the lesser of the value of your home or $625,500 of value whichever is lower. You will then receive a percentage of that value based on your age, and the interest rate. If you would like a free report call 718-968-5242 ask for Annette Fisher www.TLCreverse.com a service of Sterling Empire Funding Assoc., Ltd.
Stephanie, Here in NC, many of our HUD offices have started charging for the HUD Counseling. Apparently, FHA was funding these for HUD, but many have run out of money. The charge here is $125. This is an issue all across the Country.
Reverse Mortgages have limitations that often keep Seniors from getting the financial relief that they need. I predict that we will see a number of interesting products coming to market being marketed as "alternative solutions". One such program currently being offered by New York and California Mortgage Brokers has the same benefits of a Reverse Mortgage but instead of eating into the equity this program shares in the future value of the house. Unlike a traditional reverse, this program will allow the property to be Non-owner occupied (rental) as well as commercial and mixed use properties. The Senior must be 65 or older and in good overall health. When it comes to choices, more is always better. For more information on this Reverse Mortgage Alternative check out www.LoanChatLive.com where you can get Fast, Free, Accurate Loan information from a Mortgage Professional in your area and you can remain completely anonymous. Kim Curtis Mortgage Banker, Life Agent www.LoanChatLive.com