Reverse Mortgage Options

Is there different kinds of reverse mortgages available in Ashland Oregon?

Yes. The majority of reverse mortgages these days are insured by the Federal Housing Administration (FHA), as part of its Home Equity Conversion Mortgage (HECM) program. If you apply for a HECM loan in Ashland, you may select from the following possible choices:

Payment of loan proceeds. You could get money as a line of credit, monthly installment, a combination of these, or a lump sum.

Monthly interest rate. You may choose between a fixed rate and an adjustable interest rate. Fixed rates are only available with the lump sum settlement option.

The reverse mortgage program also provides 2 special-purpose home loan options for unique circumstances:

HECM for Purchase (H4P). HECM for Purchase in Ashland OR permits you to purchase a house in city state using money from the reverse mortgage loan.

HECM Refinancing. HECM Refinancing allows one HECM home loan to be converted into a new HECM loan. The typical reason behind refinancing a reverse mortgage in city is to get a reduced rate, if one is available, or even borrow more money, if your property value has increased.

Tip:

Getting a line of credit or monthly payment will increase the amount which you could borrow overall.

Non-HECM Reverse Mortgages

Single-purpose reverse mortgages are also made available from some local and state governments and non-profit organizations. These are typically used only for the purpose specified by the lender (as an example home maintenance or real estate taxes). They may just be available in some areas for homeowners with low to modest income. These non-HECM reverse mortgages, if available in Ashland Oregon, will not be federally insured.

A few loan providers provide proprietary reverse mortgages for seniors in Ashland, which are not federally insured. These are typically meant for consumers with higher house values.