Understanding your reverse mortgage options
Print View - Published: Mon, 7 Feb 2011 at 7:41 PM
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Reverse mortgage loans, also known as lifetime loans for seniors, are types of loans that will allow your loved ones to turn home equity into cash without those pesky tax complications. Plus, they get to retain the ownership of their home. Reverse mortgages allow the senior to live in their home without any payments due. The repayment of the loan is delayed until the home owner borrowing the money is no longer living in the property. Of course, once the loan becomes due, it will have to be paid in full. The Senior citizens heirs will have up to 1 year to either refinance or sell the residence. All remaining equity will belong to the heirs of the estate and at this time be subject to any applicable taxes. Thanks to the lack of payments the property owner has been able to enjoy their home without the tension of monthly house bills.
Reverse mortgage loans are also preferred and helpful to families because they'll never pay more than the value of their home.
Another benefit is that the borrower can continue to live in their property without the monthly mortgage obligation. The property owner is still required to pay the property taxes, insurance and take care of any general fixes needed on the property. nFailing to pay these bills can result in their loan being called payable.
Borrowers who take advantage of this loan cannot have any other types of liens on the house. In other words, if the dwelling already has a mortgage, this loan has to be paid off using proceeds from the reverse mortgage.
The main qualification conditions a borrower needs to satisfy are the following: he or she must be in excess of 62 years of age and the home needs to be their primary residence.
As the primaryresidence thehome owner must reside in the home within any given 12 month period of time. If the homeowner no longer dwells in the house for a period of time greater then one year the loan will called due and payable.
A HUD Counseling Session is also mandatory and borrowers will need to attend these sessions or they can get counseling by phone. The HUD counselors will issue a certificate of completion which the lender will need prior to finalizing any financing.
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Reverse Mortgages have come along way over the years to find out more. --Go Here--
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