Insurances.net
insurances.net » Mortgage Insurance » Reverse Equity Mortgage - Who Is Eligible
Auto Insurance Life Insurance Health Insurance Family Insurance Travel Insurance Mortgage Insurance Accident Insurance Buying Insurance Housing Insurance Personal Insurance Medical Insurance Property Insurance Pregnant Insurance Internet Insurance Mobile Insurance Pet Insurance Employee Insurance Dental Insurance Liability Insurance Baby Insurance Children Insurance Boat Insurance Cancer Insurance Insurance Quotes Others
]

Reverse Equity Mortgage - Who Is Eligible

Reverse Equity Mortgage - Who Is Eligible

The basic idea of the reverse equity mortgage is to help senior citizens

, who have modest income and who need extra disposable money, to get it from the equity of their homes. So these people have low monthly incomes but they own homes, where they have equity left. Okay and they must be age 62 or older.

1. Property Types Allowed.

A senior, who can become eligible for a FHA loan, has to own a manufactured home constructed after 1976, a 1- 4 unit home or a condominium, which is approved by HUD. Additionally all property types must meet FHA standards. The properties, which are located on cooperative developments are not eligible.

2. Who Has The Right To Be On The Loan?

This is a very important question, which you have to think thoroughly before you sign anything. It is important to put the names of the home owners on the note, but all must naturally fulfil the requirements, i.e. to be 62 or over.

On one note there can be maximum three owners and at least one have to live permanently in the home. These three owners can be non relatives, but all must fulfil the requirements.

3. Reverse Mortgage vs Home Equity.

The senior reverse equity mortgage loan uses the home equity. The home equity is the capital, which the home owner has paid during a long period of time. Now, when a senior has lower income and increased expenses, owing to medical bills for instance, he wants to use the home equity and to convert part of that into cash money.

4. Can You Get Home Equity Mortgage Without Income?

Yes, you can. If you wonder, how is this possible, you can think that the loan is taken against the equity of the home. Another principle is, that the idea is to help seniors to get more disposable monthly income. So when you get money from the equity of the home and the loan will be paid back, when you pass away or move permanently, your incomes have no meaning.

5. You Cannot Owe More Than The Value Of The Home.

One part of your reverse equity mortgage is a compulsory mortgage insurance. The idea is, that if the selling price of your home does not cover all the reverse loan costs, the remaining sum will be paid from the mortgage insurance. This means, that you will never owe more than the value of your home, nor your other assets will never be used to pay this loan.

by: Juhani Tontti
Creating Unlimited Wealth And Freedom Through Passive Income Reverse Equity Mortgage - How Much Money Do I Get Reverse Equity Mortgage - Answers To Senior Retirement Questions Comparing The Two Main Types Of Passive Income Secrets For Developing Multiple Streams Of Passive Cash Flow Finding The Golden Key To Unlimited Wealth Remortgage Deals: Top 5 Tips For Choosing A Remortgage Deal Are Fha Loans The Replacement For Subprime Mortgage Lending? Can You Still Refinance Your Mortgage If You Have Bad Credit? How To Avail Financial Services When You Need One Cash Out Refinancing Exclusive Versus Non-exclusive Mortgage Leads What Exactly Is A Mortgage?
Write post print
www.insurances.net guest:  register | login | search IP(34.229.131.158) / Processed in 0.011766 second(s), 6 queries , Gzip enabled debug code: 24 , 2419, 965,
Reverse Equity Mortgage - Who Is Eligible