Sentences with phrase «reverse mortgage loan borrowers»

Federal law requires that reverse mortgage loan borrowers meet with a third - party counselor that has been trained and approved by the Department of Housing and Urban Development (HUD) for an unbiased look at the pros and cons of borrowing.

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Federal law requires that reverse mortgage loan borrowers meet with a third - party counselor that has been trained and approved by the Department of Housing and Urban Development (HUD) for an unbiased look at the pros and cons of borrowing.

Reverse mortgage loan borrowers have many different reasons for getting the loan.

When a reverse mortgage loan borrower passes away, the loan becomes due and payable.

Not exact matches

Proprietary reverse mortgages, also known as jumbo reverse mortgages, are for borrowers who want a large loan and own a more expensive property.

Most importantly, reverse mortgage loans don't have to be paid off until the home is sold or until the borrower no longer lives in it.

However, if you are confident a reverse mortgage loan is the best option for you, these counselors can answer your questions and offer unbiased information about the advantages, drawbacks, loan process, and your responsibilities as a borrower.

In fact, many borrowers are attracted to reverse mortgages because the proceeds will pay off any existing mortgages as part of the loan.

In 1984, American Homestead sets the foundation for government - insured reverse mortgages when it unveils the Century Plan, which is the first mortgage that keeps the loan in place until a borrower permanently leaves the residence.

Keep in mind that a reverse mortgage is still secured with an interest in the home, so in the rare event that the borrower fails to comply with terms of the loan, the home may go into foreclosure.

A Home Equity Conversion Mortgage, also known as the HECM reverse mortgage, is a loan that functions as a federally - insured cash advance on a borrower's home equity, and, while there are other maturity events as well, it is repaid when the last borrower or eligible non-borrowing spouse leaves tMortgage, also known as the HECM reverse mortgage, is a loan that functions as a federally - insured cash advance on a borrower's home equity, and, while there are other maturity events as well, it is repaid when the last borrower or eligible non-borrowing spouse leaves tmortgage, is a loan that functions as a federally - insured cash advance on a borrower's home equity, and, while there are other maturity events as well, it is repaid when the last borrower or eligible non-borrowing spouse leaves the home.

The FHA reverse mortgage has many compared to traditional home equity loans: no payment is necessary until the borrowers no longer use their home as the primary dwelling, for example, if the home is converted into a rental property or if the borrowers move into an assisted living community.

When the reverse mortgage loan does become due, the borrower's heirs / estate can choose to repay the reverse mortgage loan and keep the home or put the home up for sale in order to repay the loan.

Lenders first use reverse mortgage loan proceeds to pay off existing mortgages and liens on the property, after which borrowers may use the rest of the funds in almost any way they wish.

To be eligible for a reverse mortgage loan, the FHA requires the youngest borrower on title to be 62 years or older.

• Further explain a reverse mortgage • Tell you about reverse mortgage product options • Go over reverse mortgage costs, such as the total annual cost • Help you determine your borrower eligibility • Help you determine if you can afford a reverse mortgage • Help you determine if you can meet all financial obligations such as maintaining your taxes and insurance • Expose you to alternative options like tax deferral programs, grant money, financial assistance, etc. • Explain how your choice can impact your heirs and estate • Go over loan comparisons

Reverse mortgage borrowers also must go through reverse mortgage counseling before applying for thReverse mortgage borrowers also must go through reverse mortgage counseling before applying for threverse mortgage counseling before applying for the loan.

You were legally married to the borrowing spouse when the reverse mortgage originally closed, or you were in a committed same - sex relationship with the borrower and could not legally marry the borrower at the time of the loan's origination, but you became legally married before the borrower died.

Most importantly, reverse mortgage loans don't have to be paid off until the home is sold or until the borrower no longer lives in it.

Mortgage Insurance Premium — The amount that a borrower pays to the Federal Housing Administration (FHA) towards the reverse mortgage loan's inMortgage Insurance Premium — The amount that a borrower pays to the Federal Housing Administration (FHA) towards the reverse mortgage loan's inmortgage loan's insurance.

While you may want to list just the oldest member of the household as the borrower on the loan, the funds from a reverse mortgage are available only to the borrower.

In addition, the FHA has set some additional safeguards to protect borrowers and encourage responsible reverse mortgage loan use.

Although the FHA's rules and regulations for the reverse mortgage loan may seem stringent to some, they are designed with the borrower's best interests in mind and are truly beneficial to you as a borrower.

With AAG Advantage, qualified borrowers may now obtain a reverse mortgage on properties valued at up to $ 6 million, versus the FHA loan limit of $ 679,650 (updated January 1, 2018) associated with a traditional Home Equity Conversion Mortgage (HECmortgage on properties valued at up to $ 6 million, versus the FHA loan limit of $ 679,650 (updated January 1, 2018) associated with a traditional Home Equity Conversion Mortgage (HECMortgage (HECM) loan.

These home loans are considered «reverse» because payments are made from the mortgage lender to the borrower: a reverse mortgage draws upon the borrower's home equity to create the cash flow.

But reverse mortgage loans can also carry some degree of risk if borrowers don't understand how these loans work.

In April 2014, the U.S. Department of Housing and Urban Development (HUD) released Mortgagee Letter 2014 - 07 announcing new changes to the Home Equity Conversion Mortgage (HECM) loan, specifically for the non-borrowing spouses of reverse mortgage boMortgage (HECM) loan, specifically for the non-borrowing spouses of reverse mortgage bomortgage borrowers.

Although reverse mortgage loans are also available through conventional mortgage lenders, borrowers are cautioned to avoid «too good to be true» offers made through the mail or online.

Unlike regular «forward mortgages,» a reverse mortgage is essentially a huge negatively - amortizing loan — the loan balance increases because borrowers are not making monthly payments — it follows that if the loan balance increases and the value of the property declines then the FHA can be stuck with big insurance claims.

Used properly and issued by reputable lenders, FHA reverse mortgage loans can provide needed funds and eliminate monthly mortgage payments, but borrowers can be subject to fraud and misleading information if they don't understand the full consequences of the loan.

Borrowers with reverse mortgage loans are guaranteed the right to remain in their homes as long as they wish, and do not have to repay their mortgage loans unless they vacate the property securing the reverse mortgage loan.

These regulations and rules are meant to encourage borrowers to use this great financial tool as part of an intelligent retirement planning strategy, which in turn solidifies the overall strength of the reverse mortgage loan product.

When reverse mortgage lenders calculate the amount of loan proceeds that borrowers may be eligible to receive (also known as the Principal Limit), they use what is called the Expected Interest Rate.

In essence, the new changes will require mortgagees to conduct the financial assessment in order to evaluate reverse mortgage borrowers more thoroughly and to provide at risk borrowers with the means to meet their loan obligations.

The bottom line is that the reverse mortgage is like any other loan in this respect, it is not right for all borrowers but works extremely well for those borrowers whose needs or goals match well with the product.

When the last surviving borrower on the reverse mortgage meets one of the qualifying events for repayment, the loan will become due.

For borrowers with an existing mortgage, the reverse mortgage loan will first pay that off as part of the loan.

While gains in short - term rates have a minimal effect on the amount of loan proceeds reverse mortgage borrowers may be eligible to receive, hikes in longer - term rates can significantly reduce their borrowing power over time.

What this means for reverse mortgage borrowers is that not only will rising rates impact the amount of loan proceeds they might be eligible to receive, but rising rates will also affect the ability of lenders to quote loan amounts to prospective borrowers, since longer - term rates change each week.

For example, based on the recent HUD ruling, someone who marries a reverse mortgage borrower after he or she has taken out the loan or a child of the borrower who had been living in the home would not be entitled to stay on without repaying the loan.

The loan becomes due and payable as soon as the borrower moves from the home or passes away, so if you have plans to move in the next few years, you may want to also wait on getting the reverse mortgage.

But the reverse mortgage was never intended to be the end all be all loan for every borrower and every circumstance.

FHA loan guidelines require the borrower to have already paid off the home or owe very little in order to get an FHA reverse mortgage.

Mortgage Insurance Premium (MIP): This MIP fee is mandatory per HUD and is intended to protect borrowers if the reverse mortgage loan surpasses the amount the house is worth whMortgage Insurance Premium (MIP): This MIP fee is mandatory per HUD and is intended to protect borrowers if the reverse mortgage loan surpasses the amount the house is worth whmortgage loan surpasses the amount the house is worth when sold.

3 The funds available to the borrower may be restricted for the first 12 months after loan closing, due to HECM reverse mortgage requirements.

Although these new requirements are more extensive than past requirements, they will ultimately serve to protect countless reverse mortgage borrowers from default as well as further contribute to making the federally - insured HECM one of the nation's safest loan products in the market to date.

Advantage reverse mortgages are loans that allow qualified borrowers to obtain a reverse mortgage on qualifying properties.

Reverse mortgage loan closing requires the payoff of any existing mortgages, thus helping borrowers avoid foreclosure.