Reverse Mortgage How does it work?

Manufactured Homes Reverse Mortgage

2011-12-21T15:48:00.001-08:00

Manufactured Homes Reverse Mortgage

Usually Reverse Mortgages are not applicable to manufactured home or co-operative apartments. But there are a few lenders who offer reverse mortgages on manufactured homes like Reverse Mortgage Lenders Direct. Equity needs to be available for the Manufactured Reverse Mortgage Loans to be approved – simply take the amount that your home can appraise for and subtract.

HUD defines a manufacture or mobile home as a structure that is transportable in one or more sections, and is designed and constructed to the Federal Manufactured Construction and Safety Standards and is so labeled. FHA guaranteed reverse mortgage on manufactured or mobile homes has the following criteria and features unlike a standard home equity line of credit.

Manufactured Home Reverse Loan Requirements

At least 400 square feet minimum floor area
Built after June, 15 1976, to the Federal Mobile/Manufactured Home Construction and Safety Standards as evidenced by an affixed certification label.
Property is classified and taxed as real estate and is designed to be used as a dwelling with a permanent foundation built to FHA requirements.
Built and remains on a permanent chassis.
Mortgage covers both the unit and its site, and has a term of not more than 30 years from date that amortization begins.
Finished grade beneath home is at or above the 100-year flood elevation.

If you own a manufactured home and are unsure whether your home meets the requirements mentioned above, please feel free to call us on our toll free phone service 877-700-0534 or check for more information on http://www.reversemortgagelendersdirect.com

To Qualify for a manufactured reverse mortgage

must be 62 years old (those 60 days from birthday will also qualify)
must own the home
have equity in the property (difference between any what the home is worth versus what is currently owed on the mortgage)
never have defaulted on government debt
Manufactured homes built after 1976
must be permanently affixed to the property
property must be taxed as real property
skirting is a must – (acceptable perimeter enclosure)
wheels, axels, hitch must be removed

But don’t forget, Manufactured homes in a park may work, but you MUST own the land. If you pay rent reverse mortgages probably won’t be a solution for you.

What are the Benefits of a reverse mortgage loan ?

2011-11-21T18:32:00.001-08:00

What are the Benefits of a reverse mortgage loan ?

§ keep ownership of the property

§ never have another mortgage payment

§ income is tax free (proceeds/funds you receive are tax free)

§ select how you want to receive your income (monthly, lump sum, both)

§ you can sell home at any time

§ you can leave home for heirs

§ you are not at risk for foreclosures ( you have to pay for maintenance, taxes, and home insurance as this could lead to a technical foreclosure)

In addition, the home itself must be of a type that qualifies for the reverse mortgage program. The vast majority of single family homes qualify, as do most condominiums, townhomes, 2-4 unit owner-occupied dwellings and manufactured homes. Your income and credit levels, however, do NOT matter.

To go through the process of getting a reverse mortgage you will need to speak with a reverse mortgage originator or provider. This person will guide you through the preliminary steps, including counseling, home appraisals, inspections, and choice of loan specifics. It is very important to feel comfortable with your lender. Feel free to speak with as many people as you need in order to gain information and feel comfortable. Click here for Reverse Mortgage Rates.

Videos

2011-10-22T16:55:00.001-07:00

Reverse Mortgage

What is a HECM Reverse Mortgage and How does it work!

Is my home eligible for a Reverse Mortgage

Reverse Mortgage appraisal

Who qualifies for a Reverse Mortgage

Reverse Mortgage is tax free and does not affect social security or Medicare

Reverse Mortgage fees and closing costs

Reverse Mortgage heirs

HECM loans & Estate Heirs

2011-10-19T19:52:00.001-07:00

How does Reverse Mortgage Works?

2011-10-11T12:13:00.001-07:00

What is a Reverse Mortgage you ask?

Reverse mortgage loans are a type of home loan that is available only to people over 62 years of age.

Homeowners with sizeable equity in their homes can borrow against the equity and use that loan money for any purpose! Homeowners are not subject to any specific income or credit requirements to qualify to receive reverse mortgage loans because the loans are secured by the equity in the homes. Unlike conventional mortgages, reverse mortgage borrowers do not make monthly payments to repay the loan.

The Reverse Mortgage Loan amount a borrower can get depends on a number of factors, including the amount of equity in the home, the borrower's ages and current interest rates. Seniors who take out reverse mortgages retain ownership of their homes; lenders do not take title to the homes (Reverse Mortgage for Seniors).

To be eligible for a Reverse Mortgage loan, some key requirements are:

Be at least 62 years of age or older
Live in your home as your primary residence and have sufficient equity in it
Be able to pay any existing mortgages through the Reverse Mortgage
Live in a single family home, two to four-unit owner-occupied home, townhouse, approved condominium unit, or certain manufactured homes

You must also meet the following conditions:

Attend a HUD-approved counseling session (HUD Reverse Mortgage)
Continue to pay property taxes and homeowners insurance

If you want to learn more about it, check this: Reverse Mortgage Information

What is Reverse Mortgage?

2011-10-01T13:31:00.001-07:00

What is a Reverse Mortgage you ask?

Reverse mortgage loans are a type of home loan that is available only to people over 62 years of age.

Homeowners with sizeable equity in their homes can borrow against the equity and use that loan money for any purpose! Homeowners are not subject to any specific income or credit requirements to qualify to receive reverse mortgage loans because the loans are secured by the equity in the homes. Unlike conventional mortgages, reverse mortgage borrowers do not make monthly payments to repay the loan.

The loan amount a borrower can get depends on a number of factors, including the amount of equity in the home, the borrower's ages and current interest rates. Seniors who take out reverse mortgages retain ownership of their homes; lenders do not take title to the homes.

To be eligible for a Reverse Mortgage loan, some key requirements are:

Be at least 62 years of age or older
Live in your home as your primary residence and have sufficient equity in it
Be able to pay any existing mortgages through the Reverse Mortgage
Live in a single family home, two to four-unit owner-occupied home, townhouse, approved condominium unit, or certain manufactured homes

You must also meet the following conditions:

Attend a HUD-approved counseling session
Continue to pay property taxes and homeowners insurance

If you want to learn more about it, check this: Reverse Mortgage Information

Pros and Cons!

2011-09-17T17:20:00.001-07:00

Reverse Mortgage Pros and Cons

The upsides of reverse mortgages

You can choose how to receive the money: fixed monthly payment, lump sum, line of credit or some combination of these options.
Income from reverse mortgage generally does not affect Social Security or Medicare benefits.
If you “outlive the loan,” meaning you receive more in payments than your home is worth, you will never owe more than the value of the home, according to the Federal Trade Commission, or FTC.
Loan advances are generally not taxable. • Most loans do not have income requirements.
Homeowner retains title to home.
No payments are due until last surviving borrower dies, sells home or no longer lives in home as primary residence.
HECM Reverse Mortgage programs allow borrower to live in nursing home or other medical facility for up to 12 months before loan becomes due.
After the home is sold and the loan and fees are paid to the lender, any remaining equity in the home belongs to you or your heirs.

The downsides of reverse mortgages

Reverse mortgage proceeds could impact Medicaid eligibility.
Borrowers must be at least 62 years old to qualify.
Lenders generally charge origination fees and other closing costs.
Lenders require free debt counseling prior to loan application.
Lenders may charge servicing fees during term of the mortgage.
Debt increases over time as interest is charged to outstanding balance of loan.
Most loans have variable interest rates tied to short-term indexes, such as the one-year Treasury bill or LIBOR. Fixed Rate Loans are available.
As home equity is used up, fewer assets are available to leave to heirs. • Interest is not tax deductible until the loan is paid off.
Borrowers are responsible for paying taxes, homeowners insurance, maintenance costs and other expenses. If they don’t, the loan may become due.

Reverse Mortgages and how it works

2011-09-17T17:19:00.000-07:00

Reverse mortgages, how they work?

Introduction to Reverse Mortgages

What is a reverse mortgage - a government insured home mortgage loan specifically designed for seniors who want/need to release equity from their home.

Who Can Qualify For a Reverse Mortgage

must be at least 62 or older
own a home ( primary residence )
have equity in the home
never have defaulted on government debt

What are the Benefits of a reverse mortgage loan ?

keep ownership of the property
never have another mortgage payment
income is tax free ( proceeds/funds you receive are tax free)
select how you want to receive your income ( monthly, lump sum, both)
you can sell home at any time
you can leave home for heirs
you are not at risk for foreclosures ( you have to pay for maintenance, taxes, and home insurance as this could lead to a technical foreclosure)

“Now that you have been introduced to the HECM reverse mortgage definition, qualification process, we can cover how does a reverse mortgage work!”

Reverse Mortgage Disadvantages

This is a loan, therefore when both borrowers pass away or move homes they will pay the loan back, also there are closing costs associated with this mortgage, but by using our free service to compare multiple lenders this wont be a disadvantage.

How reverse mortgages work?

Rhe reverse mortgage allows you to tap into your homes equity, this money is tax free and you can spend it as you wish. This is the only mortgage which is senior friendly as it does not require you to have income or credit scores.

To find out how much you can receive visit: Reverse Mortgage Calculator

To find out more visit Reverse Mortgage Information

Want to know about Reverse Mortgage Rates?

2011-09-17T17:18:00.000-07:00

Want to know about Reverse Mortgage Rates?

Reverse Mortgage Lenders Direct have daily reverse mortgage rates, which can help you determine your borrowing costs, how much money you will receive, and whether it is a good time to even consider getting a reverse mortgage.

When considering a reverse mortgage, the interest rate you receive is very important as it determines the cost for you to borrow this loan. While you don’t have to make any payments with a reverse mortgage, the interest is accruing and building up making you equity lesser with time. This is how the bank makes their money with a reverse mortgage, so the lower the interest you receive the better off you are.

Interest Rates and How They Affect Reverse Mortgages

As mentioned above this is a crucial factor in lending costs for a reverse mortgage, and even a .5% can make a big difference in borrowing costs. Reverse Mortgage Lenders Direct have an specialist who are trained in reverse mortgage rates comparison, and by you contacting us we are able to then tell you your real cost of borrowing, or taking out a reverse mortgage.

You are able to either borrow a reverse mortgage loan with fixed interest rates or variable interest rates. Variable interest rates track an underlying index like the libor and fluctuate, while the fixed rate is always the same. Fixed rate mortgages are easier to plan for since your loan amount would be given by lender provides for more security, more transparent, and overall safer for consumers.

Reverse mortgage interest rates are at all-time lows, there is currently plans for both a restrictions on reverse mortgages or tougher qualification standards. We recommend seniors (Reverse Mortgage for seniors) to consider reverse mortgages now as the rates are low and home prices are still stable.

You can use a Reverse Mortgage Calculator to find you how much you can qualify for and if you need more information visit Reverse Mortgage Information

What is Reverse Mortgage you ask me?

2011-09-17T17:17:00.000-07:00

What is a Reverse Mortgage?

First, what a reverse mortgage is NOT:

It is not a decision to be taken lightly
It is not available to homeowners under the age of 62
It is not free money
It is not a cure-all
A reverse mortgage is not “a way for the bank to get your house”
It is not based on income or credit levels
It is not a traditional home equity loan

What a reverse mortgage is: a good tool for financial planning and flexibility. There are only a very few requirements for eligibility:

• Must be at least 62 or older

• Own a home (primary residence)

• Have equity in the home

• Never have defaulted on government debt

What are the Benefits of a reverse mortgage loan ?

keep ownership of the property
never have another mortgage payment
income is tax free (proceeds/funds you receive are tax free)
select how you want to receive your income (monthly, lump sum, both)
you can sell home at any time
you can leave home for heirs
you are not at risk for foreclosures ( you have to pay for maintenance, taxes, and home insurance as this could lead to a technical foreclosure)

Once you receive the money, there are virtually no restrictions on the way in which it can be used.

You MUST:

Repay existing debt, including the existing mortgage

You Can:

Make Home Improvements
Finance Regular Living Expenses
Ease Healthcare Costs
Take a Trip to Somewhere You’ve Always Wanted to Go
Give Gifts to Your Family and Friends

It almost seems too good to be true. There are, however, as with everything these days, costs involved. There is an origination fee, closing costs, a servicing fee, mortgage insurance, and interest. These costs come from the proceeds of the loan. You pay very little directly out of your pocket.

You should also know that you cannot lose your home at any time during the life of the loan for failure to make payments. THERE ARE NO PAYMENTS TO MAKE. The loan does not come due until you permanently leave the home or the last borrower dies. The home must be kept up to reasonable standards, it must be insured, and the property taxes must be paid.

Default risk is one of the ways in which a reverse mortgage differs from a traditional mortgage or home equity loan. With those traditional products there is a risk of default and therefore a chance you could lose your home. On the other hand, there are no payments to make with a reverse mortgage. Therefore, as long as the property is kept to a reasonable standard, you will always have somewhere to live.

In addition, you can never owe more than the value of your home. Even if you have been paid more than your home is worth, you can only owe the value of your home. When the loan comes due, you or your heirs can either pay off the loan with existing funds or sell the house in order to satisfy the loan. Excess proceeds from the sale go to your or your estate. If you still have doubts, check this: Reverse Mortgage Lenders Direct

Check http://reversemortgagelendersdirect.com for more information!

Reverse Mortgage How does it work?

Manufactured Homes Reverse Mortgage

Popular Searches on Reverse Mortgage

What are the Benefits of a reverse mortgage loan ?

Videos

HECM loans & Estate Heirs

How does Reverse Mortgage Works?

What is Reverse Mortgage?

Pros and Cons!

Reverse Mortgage Pros and Cons

Reverse Mortgages and how it works

Reverse mortgages, how they work?

Want to know about Reverse Mortgage Rates?

Want to know about Reverse Mortgage Rates?

Interest Rates and How They Affect Reverse Mortgages

What is Reverse Mortgage you ask me?