Reverse Mortgages have in the past been just for refinance's now seniors can buy a home with a reverse mortgage. It is under the same criteria as a refinance. The borrower has to be 62 years old and it has to be for their primary residence. Their are no credit requirements all they need is the down payment.
Reverse Mortgages
Reverse mortgages (also called home equity conversion loans) enable elderly homeowners to tap into their equity without selling their home. The lender pays you money based on the equity you've accrued in your home; you receive a lump sum, a monthly payment or a line of credit. Repayment is not necessary until the borrower sells the property, moves into a retirement community or passes away. When you sell your home or no longer use it as your primary residence, you or your estate must repay the cash you received from the reverse mortgage plus interest and other finance charges to the lender.
Reverse mortgages are ideal for homeowners who are retired or no longer working and need to supplement their income. Interest rates can be fixed or adjustable and the money is nontaxable and does not interfere with Social Security or Medicare benefits. Your lender cannot take property away if you outlive your loan nor can you be forced to sell your home to pay off your loan even if the loan balance grows to exceed property value.
A Little More Understanding
Most seniors think that if they do a reverse mortgage they are giving their home away to the goverment, This is not true! It's a mortgage much like any other mortgage. The senior owns the home with a lien on it. It can be left to the seniors aires and they will have up to 1 year to sell or refinance or pay the loan off. This is different than a regular forward mortgage because with a forward regular mortgage the aires have to make payments until the property is sold or refinanced or payed off.
APPROVED MORTGAGE 615 N Hwy 17-92 Suite 102B Debary, FL 32713-1800
