5 Killer Reverse Loan Musts For A Home Owning Senior

The funds come from the once saved mortgages, i.e

. the reverse loan works in a reverse way than the usual mortgage. The home would be the only guarantee and there is no need for the credit or income information. The borrower will always stay as an owner of the home, so he will enjoy about the home price increases.

1. All Reverse Loan Borrowers Must Be 62 Or Older.

Altogether 3 persons can be borrowers, and owners, and all must be at least 62 and own the home, where there is equity left. The reverse loan is always a long term commitment, so the purpose for which the money will be used must be a serious one. But the borrower can decide how he will use the money, it is totally his money.

The maximum loan sum is $ 625.000. The sum depends on three factors. The age of the borrower, the appraised value of the home and on the interest rates. We can say that the older the borrower, the lower the interest rate and the higher the appraised value of the home, the more the borrower will get.

2. Seniors Must Own A Property And Occupy As A Primary Residence.

Yes, a senior or seniors have to own the home, where they have equity left. The residence must be their primary residence, where they live at least six months a year. If they will stay at the hospital or in some other medical treatment place, it is best to ask for the guidance from the state.

3. A Senior Has To Meet The Counselor.

The obligatory counselor meeting is targeted to guarantee, that a senior will do a good decision. There are also some scam firms in the industry and the counselor can guide, which are the trusted companies and which are the accepted terms of the agreement.

4. The Property Has To Fulfil FHA Property Standards.

The properties, which are classified as the vacation homes or secondary residences do not qualify for the reverse mortgage loan. Also the mobile or manufactured homes, which are not attached to a permanent foundation, will not qualify. Rental properties of more than four units and the homes, which are located on a leased land will not qualify.

5. To Keep The Property In Shape Concerning The Repairs, Property Taxes And Insurance

Despite of the fact, that the borrower stays as an owner, he has to take care of the condition of the property and pay the property taxes or insurances. This is natural because the property is the only guarantee for the reverse loan.

by: Juhani Tontti

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