Reverse Mortgages Top Ten FAQ

So...Are you starting to understand a Reverse Mortgage? In todays post we are covering 2 additional FAQ's-

6. Can the lender take my home away if I outlive the loan?

No! You do not need to repay the loan as long as you or one of the borrowers continues to live in the house and keeps the taxes and insurance current. You can never owe more than your home's value.

7. Will I still have an estate that I can leave to my heirs?

When you sell your home or no longer use it for your primary residence, you or your estate will repay the cash you received from the reverse mortgage, plus interest and other fees, to the lender. The remaining equity in your home, if any, belongs to you or to your heirs. None of your other assets will be affected by HUD's reverse mortgage loan. This debt will never be passed along to the estate or heirs.

Reverse Mortgages vs. Equity Loan

Continuing our discussion on Reverse Mortgages, we will compare a Reverse Mortgage to an Bank Loan Equity Line in Tip #5-

5. What's the difference between a reverse mortgage and a bank home equity loan?

With a traditional second mortgage, or a home equity line of credit, you must have sufficient income versus debt ratio to qualify for the loan, and you are required to make monthly mortgage payments. The reverse mortgage is different in that it pays you, and is available regardless of your current income. The amount you can borrow depends on your age, the current interest rate, and the appraised value of your home or FHA's mortgage limits for your area, whichever is less. Generally, the more valuable your home is, the older you are, the lower the interest, the more you can borrow. You don't make payments, because the loan is not due as long as the house is your principal residence. Like all homeowners, you still are required to pay your real estate taxes and other conventional payments like utilities, but with an FHA-insured HUD Reverse Mortgage, you cannot be foreclosed or forced to vacate your house because you "missed your mortgage payment."

FAQ About Reverse Mortgages

We will continue with our Top 10 Frequently Asked Questions About Reverse Mortgages and today we are covering points 3 and 4-

3. Can I apply if I didn't buy my present house with FHA mortgage insurance?

Yes. It doesn't matter if you didn't buy it with an FHA-insured mortgage. Your new HUD reverse mortgage will be a new FHA-insured mortgage loan.

4. What types of homes are eligible?

Your home must be a single family dwelling or a two-to-four unit property that you own and occupy. Townhouses, detached homes, units in condominiums and some manufactured homes are eligible. Condominiums must be FHA-approved. It is possible for individual condominiums units to qualify under the Spot Loan program.

FAQ About Reverse Mortgages

Last week I mentioned that I would be sharing some frequently asked questions about Reverse Mortgages. This concept has become extremely popular in the last couple of years and it is really catching on in our area, to the point where certain mortgage lenders are actually specializing in them. Over the next few days, I will be sharing the Top 10 Questions list as published by The U.S. Dept. of Housing and Urban Development. Today's questions/answers follow:

1. What is a reverse mortgage?

A reverse mortgage is a special type of home loan that lets a homeowner convert a portion of the equity in his or her home into cash. The equity built up over years of home mortgage payments can be paid to you. But unlike a traditional home equity loan or second mortgage, no repayment is required until the borrower(s) no longer use the home as their principal residence. HUD's reverse mortgage provides these benefits, and it is federally-insured as well.

2. Can I qualify for a HUD reverse mortgage? To be eligible for a HUD reverse mortgage, HUD's Federal Housing Administration (FHA) requires that the borrower is a homeowner, 62 years of age or older; own your home outright, or have a low mortgage balance that can be paid off at the closing with proceeds from the reverse loan; and must live in the home. You are further required to receive consumer information from HUD-approved counseling sources prior to obtaining the loan. You can contact the Housing Counseling Clearinghouse on 1-800-569-4287 to obtain the name and telephone number of a HUD-approved counseling agency and a list of FHA approved lenders within your area. Interested in talking to one of our Reverse Mortgage Specialists? Give me a call or post a comment and I will get you in touch with just the right person!

Sunlight Reverses Aging

I found this rather interesting and wanted to pass it along....We hear so much about the bad effects of sun exposure as related to skin cancer. However, a study in the American Journal of Clinical Nutrition found that high levels of vitamin D--a nutrient your body makes from sun exposure, can actually slow the aging process by up to 5 years. The vitamin apparently cuts down on DNA damage that boosts the risk of age-related illnesses like heart disease and cancer. Just 20 minutes a week of sunlight on your skin (preferably not on your face) can deliver 90 percent of your daily D requirements...This is good news for those who enjoy the outdoors and should not be compared to spending time in tanning booths or day-long outings on the beach, both of which dramatically raise the risk for skin cancer and premature aging.

Tour Charlottesville!

I hope you enjoy these photos of our beautiful area! I will be posting them to my web site as well!

Make a slideshow - it's easy!

Reverse Mortgages for Seniors

Reverse mortgages are becoming popular in America. In the last few years, some of our mortgage lenders have been promoting this product locally to folks who are approaching or already enjoying, their retirement years. Reverse mortgages are a special type of home loan that lets a homeowner convert the equity in his/her home into cash. They can give older Americans greater financial security to supplement social security, meet unexpected medical expenses, make home improvements, and more.

If you are interested in a reverse mortgage, beware of scam artists that charge thousands of dollars for information that is free from HUD!
To report fraud or abuse in the reverse mortgage program, contact your local homeownership center.

Since your home is probably your largest single investment, it's smart to know more about reverse mortgages, and decide if one is right for you!

I will sharing some FAQ about reverse mortgages in upcoming posts and welcome your questions in the meantime. If you would like a list of local mortgage lenders specializing in reverse mortgages, please contact me and I will give them to you.

What You Want, When You Want It!

Have you ever asked yourself these questions?

• What is the supply of unsold homes in my neighborhood?
• How fast are homes selling right now?
• How do actual selling prices compare to listing prices in my area?
• How do I get more for the money in a changing market?

I have recently discovered a new program-Market Snapshot, that can provide you "real-time" MLS market updates and trends analysis. Oh, by the way...if you are thinking about BUYING a home in the Charlottesville area, you will also find this program helpful. Click here to see an example:

Market Snapshot Sample

Are you interested in local community and school information? Interactive MLS Charts and Reports? You will find this here too! To sign up for a Market Snapshot, sign up here:

Sign up for Market Snapshot!

Let me know your thoughts on this program..I have some great information in the next post about Reverse Mortgages...Stay tuned!