Reverse Mortgage Refinance or Purchase

Reverse Mortgage Refinance or Purchase

Those who are over age 62 may consider a reverse mortgage. This type of mortgage is guaranteed by the FHA and is a way of making use of the equity seniors have invested in their house without incurring a monthly mortgage payment. This is a type of loan that provides borrowers with cash that can be used to refinance the property or even purchase a new property. However, there are a number of guidelines that must be followed. It is important to note that even though a reverse mortgage can be used to pay off the rest of the existing mortgage, the homeowner must continue to pay homeowner’s insurance and all taxes.
  • 8.Reverse Mortgage Refinance or Purchase

  • How Much Money can be Borrowed?

    The amount of money that a borrower can receive through a reverse mortgage is determined by a specific formula. It takes into consideration the age of the borrower (in the case of multiple borrowers, such as with a married couple, the youngest borrower’s age is used), the appraisal value of the property, the current interest rates, the sale price of the property, and the maximum amount that can be borrowed. The entire amount of the reverse mortgage may also not be available right away—guidelines may restrict the amount available for 12 months following approval of the reverse mortgage.

    Eligibility

    In order to receive a reverse mortgage, the borrowers must meet certain financial guidelines, and all borrowers listed on the property’s title must be at least 62 years old. If they still owe on the home’s current mortgage, the balance must be paid off with the reverse mortgage. Most properties, including single-family, multi-family, townhouses, and condos, qualify for a reverse mortgage provided they meet FHA property standards.

    Repaying the Reverse Mortgage

    The repayment schedule of a reverse mortgage is one of the things that makes it so attractive: usually, no payment has to be made on this loan until the borrowers move out of the property. In fact, usually payment isn’t due for six months after moving out. If the homeowners die without moving out and paying on the reverse mortgage, the estate is liable for the loan.

*The down payment associated with this offer is from the borrower’s funds (the borrower’s funds must be sourced and can include gift funds or funds from approved Down Payment Assistance program). The down payment cannot be from the lender credit or a seller credit. Restrictions apply, consult your Personal Mortgage Advisor for details.

All home lending products are subject to credit and property approval. Rates, program terms and conditions are subject to change without notice. Corporate NMLS Unique Identifier # 32416. Verify a mortgage company or individual license on the Nationwide Mortgage Licensing System Consumer Access site: www.nmlsconsumeraccess.org. The interest on the portion of the credit extension that is greater than the fair market value of the dwelling is not tax deductible for Federal income tax purposes: and the consumer should consult a tax advisor for further information regarding the deductibility of interest and charges. U.S. Dept. of Housing & Urban Development Mortgagee-FHA Lender ID # 23773-0000-0, 23773-00017 (Unconditional Direct Endorsement Approved), USDA SFHGLP Approved, Department of Veterans Affairs VA Automatic Lender 56997-00-00. Nations Lending Corporation®

Homeowner is still responsible for taxes, insurance and maintenance. This advertisement and material is not provided nor approved by the U.S. Department of Housing and Urban Development (HUD) or the Federal Housing Administration (FHA).