If you are a homeowner aged from 62 years old and above, you may
qualify for Reverse Mortgage Program. Reverse Mortgage Program is a safe plan to give elderly homeowners, like you, greater financial security. Reverse mortgage is a home loan that allows the conversion of the
home equity into cash that may be used as a Social Security, pay for unexpected medical expenses, make home improvements - among other things. There are no restrictions on how you can use the funds, you can spend it as you wish.
The good thing about this loan, is that unlike conventional mortgages, there are no income requirements to qualify for the loan. Borrowers do not need to make any monthly payments unless the homeowner moves out or dies or the loan becomes due.
The money received will be non taxable and will not affect the Social Security or Medicare Benefits. However, the borrower must keep his tax payments and insurance up to date so as not to default on the reverse mortgage.
You can receive the loan payments in 5 different ways:
1. Tenure - equal monthly payments as long as the you live and continue to occupy the property as the main residence.
The good thing about this loan, is that unlike conventional mortgages, there are no income requirements to qualify for the loan. Borrowers do not need to make any monthly payments unless the homeowner moves out or dies or the loan becomes due.
The money received will be non taxable and will not affect the Social Security or Medicare Benefits. However, the borrower must keep his tax payments and insurance up to date so as not to default on the reverse mortgage.
You can receive the loan payments in 5 different ways:
1. Tenure - equal monthly payments as long as the you live and continue to occupy the property as the main residence.
2. Term - equal monthly payment for a specified number of months chosen.
3. Line of Credit - unscheduled pay-out at times in the amount of your choosing until the fund is exhausted.
4. Modified Tenure - combination of Tenure and Line of Credit option as long you live in the property as your main residence.
5. Modified Term - combination of Term and Line of Credit.
To be eligible for the home loan, you must be a homeowner 62 years of age or older, own your home outright, or have a low mortgage balance which can be paid from the proceeds of the reverse loan AND you must live in the home. The type of home required is a single family home or a 2-4 unit home with one unit occupied by you.
If you want to avail of this loan, you must complete a counseling session with a HUD-approved Counselor. In the Counseling session, the Counselor will explain the legal and financial responsibilities of obtaining a reverse mortgage. Once you receive the Certificate of Counseling", only then the loan can be processed.
You can get more information on www.fha.gov. Or you may call (800) 510-0301 or you can get a free booklet on
http://www.ncoa.org/news-ncoa-publications/publications/ncoa_reverse_mortgage_booklet_073109.pdf
3. Line of Credit - unscheduled pay-out at times in the amount of your choosing until the fund is exhausted.
4. Modified Tenure - combination of Tenure and Line of Credit option as long you live in the property as your main residence.
5. Modified Term - combination of Term and Line of Credit.
To be eligible for the home loan, you must be a homeowner 62 years of age or older, own your home outright, or have a low mortgage balance which can be paid from the proceeds of the reverse loan AND you must live in the home. The type of home required is a single family home or a 2-4 unit home with one unit occupied by you.
If you want to avail of this loan, you must complete a counseling session with a HUD-approved Counselor. In the Counseling session, the Counselor will explain the legal and financial responsibilities of obtaining a reverse mortgage. Once you receive the Certificate of Counseling", only then the loan can be processed.
You can get more information on www.fha.gov. Or you may call (800) 510-0301 or you can get a free booklet on
http://www.ncoa.org/news-ncoa-publications/publications/ncoa_reverse_mortgage_booklet_073109.pdf
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