Reverse Mortgage
Did you know that you can turn the equity in your home into a monthly check, without having to make any monthly payments? HUD's reverse mortgage program allows homeowners, aged 62 or over, to tap the equity in their homes while living in it, and there are no more monthly mortgage payments!
You have the opportunity to use the equity in your home while you live in it, without making another monthly payment. You choose how you would like to receive your money, and you do not have to repay the loan! The money will be repaid when the house is sold.
You can choose to receive you money in one, or in a combination, of the following ways:
- Lump-sum Payment
- Monthly Payment
- Line of Credit
This is not a standard home equity loan. You will not make any monthly payments while you live in the home. The lender will obtain the loan amount (principal and interest) when your home is sold. The rest of the proceeds from the sale of the home go to the owners of the home or their family. If the sale of the house does not cover the cost of the loan, HUD will make up the difference. The Federal Housing Administration, a division of HUD, charges a small insurance premium (2% of the value of the home up-front, ½% of the loan balance yearly) from each borrower so that they can make this coverage available. This makes the HUD program the only insured reverse mortgage program being offered today.
We are licensed Reverse Mortgage Professionals in Ohio, Kentucky and Indiana. But even if you live outside these states, we would be happy to answer any questions you might have and refer you to a broker in your area.
The amount you can borrow depends on your age, the value of your home, and the interest rate. Older people can typically borrow higher percentages of the value of their home.
There are no requirements with regard to income or other assets for borrowers who obtain a reverse mortgage. Similarly, there are no caps on the value of houses to meet the requirements for a HUD reverse mortgage. The amount you may borrow is, however, determined by the FHA home mortgage loan limit for your location. This limit depends on local real estate valuation. Click here to find out what the FHA limits are in your area. This insurance makes HUD's program less costly to borrowers than the smaller reverse mortgage programs run by private companies without FHA insurance.
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