If you need money, a reverse mortgage may be the answer you have been looking for. However, you need to do your homework to be sure that this is in fact the right option. If you have income that from Social Security benefits, savings or retirement funds that do not cover your actual expenses, or you would like to have the financial freedom to be able to enjoy your years of retirement more, then you can use the existing equity in your home to Apply For Reverse Mortgage Loans in Jacksonville FL area in Jacksonville FL.
What Exactly is a Reverse Mortgage?
The reverse mortgage, which is also referred to as a conversion mortgage, your home is used as the collateral to acquire cash. This is actually similar to a general mortgage, but with the reverse mortgage the homeowner does not have to have any level of income to qualify and there are not any monthly payments that the borrower will be required to make.
With reverse mortgages, the loan, and the interest that is on the loan are completely paid off when the property is sold. In the United States, reverse mortgages are given by Urban Development and the US Department of Housing. The program that provides these is referred to as the Home Equity Conversion Mortgage
How You can Qualify for a Reverse Mortgage
In order to qualify for an HECM reverse mortgage you have to meet certain requirements, which include:
* Being 62 or older.
* Currently own the home, or have a mortgage balance, which will be able to be completely paid off during closing with the proceeds acquired from the reverse mortgage.
* You have to currently reside in the home. It can be a single family residence or a one-four unit home; however, the borrower has to reside in it.
How a Reverse Mortgage Works
Once the property has been sold, this can be during the owner’s lifetime, or after they pass away, the price of the actual property will pay the loan back. This is a rule that is in place, even if the actual sale price is less than the combination of the interest and loan – this is referred to as the short sale.
Since the reverse mortgage will be backed by HUD, in the instance of a short sale, HUD will then pay back the difference. By law, lenders are not able to go after the other assets that the homeowner has, which means that you do not have to worry that your children will be responsible for the payments from the inheritance they receive.
