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Reverse Mortgages
Reverse Mortgage Overview
Below are some hypothetical examples of monthly money paid to you for as long as you live in the home regardless of whether the value of the property goes down. If the property is sold for less than the amount owed when the owner no long lives in the house, the lender’s insurance will pay the lender the difference. The family never has to pay back any amounts even when the house sells for less the the loan balance. The fixed interest rate at this time is 4.99%.
$ 3941 received monthly for life – Age 85, $ 750,000 Value
$ 2409 received monthly for life – Age 70, $ 750,000 Value
$ 2335 received monthly for life – Age 85, $ 375,000 Value
$ 1425 received monthly for life – Age 70, $ 375,000 Value
Participant Guide
Introduction
What is a Reverse Mortgage
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- A reverse mortgage enables borrowers at least 62 years and older to convert some of their home equity into tax free funds. The funds can be used to:
o Pay off existing mortgage
o Supplement retirement income
o Cover health care expenses
o Reduce credit card debt
o And much more
- No repayment is required until their home is no longer their principal residence and all terms and conditions of the program are met
- There are no income, asset (other than the home), employment or credit score requirements
Benefits of a Reverse Mortgage
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- The borrower retains title to the mortgage
o The bank does not go on title
o Title vesting on a reverse mortgage is the same as a traditional mortgage
- There is no fixed maturity date on a reverse mortgage because it comes due when the senior no longer occupies the home as their primary residence
- Tax-free proceeds will not currently affect Social Security or Medicare; however, borrowers should consult their benefits providers.
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Eligibility Requirements
Borrower
Eligibility
Borrower
Eligibility
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The following eligibility requirements apply to all borrowers:
- At least 62 years of age or older
- Revocable Trusts, Guardianships, Conservatorships, and Durable Power of Attorney (DPOA’s) allowed
- Own home free and clear or have a balance that can be paid off with the reverse mortgage
- Must visit with an FHA approved counselor; this is a protection built in by HUD to make sure the lender has answered all their questions and presented the program adequately
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Property Eligibility
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Acceptable Property Eligibility:
o Borrower must live in one of the units to meet the owner-occupied requirement.
o The single-unit FHA county lending limit should be used regardless of number of units
- Town-homes (treated as single family residence)
- Condo’s (must be approved before Fulfillment takes app.)
- PUD’s (treated as a single family residence)
- Manufactured /Mobile Homes
- Leasehold interest in property
- Leaseholds are not allowed on manufactured/mobile homes
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How Much Can be Borrowed
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The amount of cash available to the borrower is determined by the following:
- Age of the youngest borrower
- Current interest rate
- Market value of the home
- National Lending Limit from HUD (Currently $625,500)
To find out how much you would receive per month in your situation, (or a lump some of money or both) please email Dave Mallegg : dave@socalfunding.com
or Call or Text Cell Phone 949 289 7484 |
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The following eligibility requirements apply to all borrowers:
- At least 62 years of age or older
- Revocable Trusts, Guardianships, Conservatorships, and Durable Power of Attorney (DPOA’s) allowed
- Own home free and clear or have a balance that can be paid off with the reverse mortgage
- Must visit with an FHA approved counselor; this is a protection built in by HUD to make sure the lender has answered all their questions and presented the program adequately
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 Dave Mallegg Laguna Beach California |
By Dave December 11, 2010
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