Can a living trust or other form of trust take out a reverse mortgage? Yes, but subject to the conditions of the trust. The entire trust must be made approved by the underwriter of the Reverse Mortgage loan.
What if we have low income or poor credit? Credit and income are not considerations in qualifying for a Reverse Mortgage. The loan amount you qualify for is solely based on the age of the borrowers, the value of the property, and the current interest rates.
How do I know if I can get a reverse mortgage? Generally speaking, if all owners of the property are at least 62 years of age, and the home is owned free and clear, or a small balance remains on an existing mortgage, a reverse mortgage is possible. To find out the amount you qualify … Continue reading “How do I know if I can get a reverse mortgage?”
A Reverse Mortgage is a loan that enables homeowners age 62 and over to tap the equity in their home without having to make a mortgage payments, move, or sell the home. It truly is a “mortgage in reverse”. This video sums up the product:
Not at all. The truth is that closing costs average only about 1% more than that of a regular FHA mortgage on the same property. If you compared the reverse mortgage to many other conventional mortgages, the reverse mortgage could actually be lower in cost due to the fact that conventional mortgages can charge more … Continue reading “Aren’t reverse mortgages much more costly than other mortgages?”
One interesting feature of the some newer reverse mortgages that are available is that you can use the program to purchase a new home – all in a single transaction. The transaction reduces the out-of-pocket cash needed to buy a new home, eliminates any new monthly mortgage payment, and helps you keep more of the … Continue reading “Can I sell my home and use a reverse mortgage to purchase a new home?”
Some potential reverse mortgage candidates are concerned they will have less home equity to leave their heirs – until they actually speak with their heirs. Many adult children want to see their parents living comfortably and enjoying their retirement rather than struggling just to leave something behind when they die. Besides, a reverse mortgage can … Continue reading “Isn’t it selfish to get a reverse mortgage rather than leave my home equity to my children?”
Relax – even after you close your reverse mortgage, you still have a chance to reconsider. Should you decide for any reason that you no longer want the loan, you have three days to cancel.
Nope! It’s your money. There are no restrictions on how your proceeds are used. Medical care, property taxes, condominium assessments, home repairs, help with a grandchild’s college costs, or just to improve your quality of life are just some of the ways you may use your money.
During your loan period, there may be restrictions for: Renting out your home Adding new owners to the home’s title Changing your home’s zoning classification Taking out new debt against your home, or Filing for bankruptcy