Ashland Oregon Reverse Mortgages

FHA Reverse Mortgages for Seniors in (HECMs)

Are finances a little tight? Does your house payment take up to much of your income? Worried about the future and what sort of financial issues might pop up? Have you experienced events that created a financial loss? For countless years nobody in understood what a Reverse Mortgage was. Nowadays, they’re the talk of the town and well liked as senior citizens are getting a home loan without any monthly mortgage payment and of course if there are proceeds acquired, they are tax-free. This is assisting countless seniors deal with life now!

Nonetheless, Reverse Mortgages are generally complex and require an in depth explanation by a mortgage loan officer with expertise. My wish is to supply in-depth details, detailing the pros and cons about all the Reverse products, in order for each individual to determine if a reverse will be the right choice. Ideally, a face to face appointment (no obligation) is best. You deserve the time spent. I can provide you with material by mail or email. Yet again I emphasize, it is best fully understood face to face. Your home is frequently your biggest asset so I keep this front and center as I educate you.

Reverse Mortgages are great for a lot of people in , but they are not for everyone.

Is it a right choice for you? Call me and let’s find out! We can meet wherever the most convenient place for you is, my office or your home. Almost all information I’m able to provide you with over the phone, mail, FedEx, or E mail. And, once again, there certainly is no obligation, even if we have a face to face meeting!

If you’re a home-owner age 62 or older and have paid off your mortgage or paid down a large amount, and are presently residing in your home, you may take part in FHA’s Home Equity Conversion Mortgage (HECM) program. The HECM is FHA’s reverse mortgage loan program in enables you to withdraw a portion of your home’s equity.

It’s also possible to utilize a HECM to purchase a principal residence if you’re able to use cash on hand to pay the difference between the HECM proceeds and the sales price as well as settlement costs for the home you are purchasing.

Here’s How The Loan program Works

There are several things to consider prior to deciding whether a HECM is right for you. To assist with this process, you will need to consult HECM counselor to go over program eligibility requirements, financial consequences and other possibilities to obtaining a HECM and paying back the mortgage loan. Counselors will also explore provisions for the mortgage becoming due and payable. Following the completion of HECM counseling, you will be capable of making a completely independent, knowledgeable decision of whether the reverse mortgage will fulfill your specific requirements. You can search on the internet for a HECM counselor or call (800) 569-4287 toll free.

There is individual and real estate property eligibility guidelines that must be satisfied. You may use the information below to see if you meet the criteria. If you meet the eligibility standards, you can complete a reverse mortgage application by calling a FHA-approved lender in . You can search the internet for a FHA approved loan provider or you can ask the HECM counselor to provide you a listing for somebody in . The mortgage lender will discuss other requirements of the HECM program, including 1st year payment restrictions, available payment options, the loan approval process, and repayment terms.

Borrower Requirements

You must:

Be 62 years old or older
Own the property outright or paid-down a large amount
Occupy the home as your principal residence
Not be in arrears on any federal debt
Have financial resources to continue for making timely payment of recurring property charges such as property taxes, homeowner insurance and Homeowner Association fees, etc.
Take part in a consumer information session provided by a HUD aapproved HECM counselor

Property Requirements

The following eligible property types in must fulfill all FHA property standards and flood requirements:

Single family home or 2-4 unit home with one unit occupied by the borrower
HUD approved condominium project
Manufactured home that meets FHA specifications

Financial Guidelines For A Reverse Mortgage

Income, assets, monthly living expenses, and credit history are going to be verified.
Timely payment of real estate taxes, hazard and flood insurance premiums will be verified

For adjustable interest rate mortgages, you can choose one of the following payment plans:

Tenure – equal monthly payments as long as at least one borrower lives and continues to occupy the property as a principal residence.
Term – equal monthly payments for a fixed period of months selected.
Line of Credit – unscheduled payments or in installments, at times and in an amount of your choice up until line of credit is exhausted.
Modified Tenure – combination of line of credit and scheduled monthly payments for as long as you continue to live in the home.
Modified Term – combination of line of credit plus monthly payments for a fixed period of months selected by the borrower.

For fixed interest rate mortgages, you will get the Single Disbursement Lump Sum payment plan.

The amount you may borrow is determined by:

Age of the youngest borrower or eligible non-borrowing spouse
Current interest rate; and
Lesser of:
appraised value;
the HECM FHA mortgage limit of $679,650; or
the sales price (only applicable to HECM for Purchase)

When there is more than one borrower and no eligible non-borrowing spouse, the age of the youngest borrower must be used to ascertain the amount of money you can borrow.

HECM Fees

You can pay for the majority of the fees of a HECM by financing them and having them paid for from the proceeds of the loan. Financing the expenses means you do not have to fund them from your pocket. On the other hand, financing the costs decreases the net loan amount available to you.

The HECM loan in involves several charges and fees, such as: 1) mortgage insurance premiums (initial and annual) 2) 3rd party fees 3) origination fee 4) interest and 5) servicing fees. The loan originator will discuss which fees and charges are obligatory.

You’ll be charged an initial mortgage insurance premium (MIP) at closing. The initial MIP will be 2% of the max claim amount. Over the life span of the hecm, you will be charged an annual MIP that equals 0.5% of the outstanding mortgage balance.

Mortgage Insurance Premium
You will incur a cost for FHA mortgage insurance. The mortgage insurance guarantees that you are given expected loan advances. You can finance the mortgage insurance premium (MIP) within your loan.

Third Party Charges
Closing costs from 3rd parties can include an appraisal, title search and insurance, surveys, inspections, recording fees, mortgage taxes, credit rating checks as well as other fees.

Origination Fee
You likely pay an origination fee to compensate the loan originator for processing your HECM mortgage loan. A lender can charge the higher of $2,500 or 2% of the first $200,000 of your home’s value plus 1% of the amount over $200,000. HECM origination fees will be capped at $6,000.

Servicing Fee
Mortgage companies or their brokers in provide servicing throughout the duration of the HECM. Servicing involves mailing you account statements, dispersing loan proceeds and making certain that you stay up with loan conditions which includes paying real estate taxes and homeowner insurance premium. Lenders are allowed to charge a regular monthly servicing fee of no greater than $30 when the loan has an annually adjusting rate or has a fixed rate. The lender may charge a monthly servicing fee of not more than $35 if the interest rate adjusts monthly. At loan closing, the lender sets aside the servicing fee and deducts the fee from the funds available. Each month the monthly servicing fee is added to your loan balance. Loan companies may also elect to include the servicing fee in the mortgage loan interest rate.