Who Qualifies for Reverse Mortgages?
Reverse mortgage is a federally-insured private loan established by the U.S. Department of Housing and Urban Development (HUD) of the United States. This loan is able to provide elderly Americans a safe plan that assures them financial security. The main benefit of reverse mortgages is its ability to increase one’s spending power during retirement. For example, under the mortgage plan, retired individuals may have more money available to supply extra funds to their social security, prepare for unexpected medical expenses, and spend on other various expenditures such as home improvement. It is important for those who are considering a reverse mortgage to learn about the details of the coverage as this would help them determine if such a loan is the best fit for their needs.
Reverse mortgage loans provide an opportunity for homeowners to transfer home equity into cash. What is most attractive about the reverse mortgage loan is that one’s home cannot be taken away for reasons of non-payment. In addition, lenders have no claim on the homeowner’s income or assets. These perks are not practiced in other home equity loans.
Not everyone is qualified to obtain a reverse mortgage. A few conditions and requirements must be met in order to qualify for one. Eligible candidates must fulfill the borrower, property, and financial requirements of the program. For example, candidates must be no younger than 62 years old, own the property outright, live in the property, not be delinquent on federal debt, etc.
A wide variety of property types are eligible for the reverse loan, from detachable homes, manufactured homes, condominiums, townhouses to four unit houses. Similar to the standards on property types, the loan accepts homes that are mortgaged by various lenders. However, the reverse mortgage will not allow an individual to have a loan that exceeds the value of their house; in such a case the borrower could lose their home.
The amount of money a borrower may receive from a reverse mortgage is reliant on the house’s appraised value, the age of the borrower, and the current interest rate. Anyone interested in reverse mortgages can inquire with FNC Title Services, LLC. FNC Title, founded by Ali Farahpour, is one of the leading companies when it comes to home titles and mortgage loans. The company’s main goal is to ensure that their customers are safe, secured and covered from potential risks or problems.