Most people today will have access from 40% to 60% of the equity in their home. Having FHA as the insurer of these loans give people peace of mind knowing you will always have access to your money. Another benefit customers have is if the loan servicing company were to go out of business, FHA would step in and provide any funding for your loan if you chose to have a line of credit or monthly proceeds. Reverse mortgages are non-recourse loans meaning that if your home were to sell for less than you owe, your heirs would not be responsible for the loss. A Home Equity Conversion Mortgage is a loan originated by a private lender or broker and insured by The Federal Housing Administration (FHA). The majority of reverse mortgages originated today are Home Equity Conversion Mortgages (HECM) and it’s the main reverse mortgage offered by Sound Financial Mortgage LLC. What is a Home Equity Conversion Mortgage or HECM? Financial Assessment was introduced in 2015 to evaluate income and credit when underwriting a reverse mortgage.Maintain your home in good working condition.All property taxes, homeowner’s insurance, and homeowner’s dues (if applicable) must continue to be paid.The home must be your primary residence which you continue to own and occupy.At least one homeowner must be 62 years’ old. This is important since your monthly budget can be significantly reduced. What is the main reason you are looking into reverse mortgage information? What are some of your short and long term goals? Once you know your goals, the next question is will a reverse mortgage help you obtain these goals and do the benefits of a reverse mortgage outweigh the costs? A reverse mortgage may be able to help you live a fulfilled life so let’s explore the option in more depth.Ī reverse mortgage is a loan that gives seniors access to the equity in their home without having to make monthly principal and interest payments. You may be researching this option because you want to reduce your budget, or increase your monthly cash flow, or just have access to more money in case of an emergency. One of the biggest concerns seniors’ have today is how to remain independent and have access to the money they need to live a comfortable life. Why are people considering a reverse mortgage as a viable option in retirement?
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