What is a FHA Reverse Mortgage?

This is essentially a low interest loan that takes advantage of your home’s equity.  This is great opportunity to tap into money that you have already accrued in your home in a time when money is scarce for many.  With this type of loan, you do not have to pay it back until the last surviving homeowner passes away or moves out.  At that time, the estate has about a year to pay back the loan or the home must be sold to settle the balance.

Does all of this sound too good to be true?  It sounds like an answer to pray for people that have been dependent on money from General Motors or from stocks that have simply failed.  It is essentially just get money that is already yours.  You may have make mortgage payments most of your life so you could own your house.  Now may be the time for your house to pay you back.  And that is what a HUD Reverse Mortgage will do.  You will get monthly payments not make them.  

Are you eligible for a FHA Reverse Mortgage?  

A FHA Reverse Mortgage is perfect for people that own their home free and clear or even if you have a balance of sixty-five percent or less of the value of the home.  Either way, you could qualify for the loan and get the money you need to pay your bills or take the vacation you have always wanted.

The great thing about a HUD Reverse Mortgage is that you do not have to make monthly payments like you would with a home equity loan.  Instead, you are the one that is getting the monthly payments.  They are giving you your money and you are free to use the money when you need to for things that you truly need or simply want.  This type of loan does not have some of the strict guidelines that home equity loans require, such as creditworthiness.  Your income is not taken into consideration at all, in most circumstances.

If you qualify for a HUD Reverse Mortgage, you are able to start receiving the money right away.  What better time could there be for that?  So, if you are sixty-two or older and have a home that is at least sixty-five percent paid for, now is the time to act.  Go get the money that is yours to begin with and get that FHA Reverse Mortgage today.

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If you are buying a home or refinancing a mortgage using a FHA Housing Loan you may think you don’t need an inspection because that is what the FHA Appraiser will do.  That is a misconception believed by a lot of people.  A FHA Appraiser job is not to do a full inspection of the property.  His job is to establish what the current market value of the property.

Most Realtors will encourage you to get a full house inspection of the home you are buying, don’t rely on the FHA Appraiser report.

The author of the article below will discuss what the FHA Appraiser will normally do during an appraisal of the property.

Don’t Confuse FHA Appraiser For An Inspector

If I had a nickel for the number of times I heard a seller or a homeowner looking to refinance express some form of fear about the FHA appraiser coming in and asking him to rebuild his house, I’d be less broke than I am now.

The first thing to understand about the appraiser is he or she does not work for FHA and is not there on some detailed property inspection to force you to uphold the greatest structural integrity your home could muster.

The appraiser is an independent business in business to do one thing…. Appraise a property for value so the lender has a basis to make a loan to the borrower. This is the first and most important thing they are there to do.

That being the case their time must be spent conducting this business. When they come to the house you will notice them measuring. This is to determine livable square footage. This is the most important thing they can do to compare your home to the like-kind homes.

They will also take a look around your home for upgrades. Naturally, when comparing one home to another this is important as it goes to value.

What you won’t find him doing is checking faucets, foundation integrity, whether lights work or not, or if the air conditioning is working at its peak level.

That being said FHA appraiser have to call out certain items if they are apparent. FHA has certain rules to follow and the appraiser must adhere to these rules. The thing is these items would be blatantly apparent. If you have an obvious need for a new roof that would get called out.

I had a borrower with a home with a major obvious foundational issue. That was called out. Beyond items like this and a few minor ones like peeling paint, the FHA appraiser is there to do the job of appraising for value. FHA is a great loan today and more and more sellers and borrowers will be using this loan. It should be embraced.

By: Matt Borkowski

Article Directory: http://www.articledashboard.com

Those living in Texas can access this reverse mortgage Edu site to get answers and ariticles. This site has a thorough Texas reverse mortgage guide.

Here is another great article about "FHA Housing Loan-Great Way To Buy A Home Is With A FHA Housing Loan!"

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 The FHA Reverse Mortgage is available to people 62 years old or older.  There are of course restrictions and guidelines in order to qualify for the FHA Reverse Mortgage and you should contact a FHA Reverse Mortgage Lender to see if are eligible.

The author of the article below will give you a brief description of the FHA Reverse Mortgage Program and the role of a FHA Reverse Mortgage Lender.

FHA Reverse Mortgage Lender

The Federal Housing Administration, which is also known more commonly as the FHA, is a group that has been aiding people in getting a home since 1934. The FHA’s job is to administer the government home loan insurance program, which allows for homebuyers to qualify for a home loan, is an organization that lenders must affiliate with. In addition to offering mortgage loan insurance, FHA also offers insurance for what is called a Reverse Mortgage Loan. Reverse mortgages are only available to senior citizens that are 62 years of age or older.

Reverse mortgages are mortgage loans that a person who already owns a home can take out in order to refinance that home. In addition, reverse mortgage loans can also be taken out for senior citizens that are looking for a new home to purchase, but do not want to pay monthly mortgage bills.

The way a reverse mortgage works is very different from the way a traditional mortgage works; reverse mortgages do not require the borrowers (homeowners) to pay back the loan. In fact, reverse mortgage lenders actually pay the borrowers (homeowners) instead.

Lenders pay in a variety ways, the most common of which are One Lump Sums, monthly payments, periodic lines of credit, or a combination thereof. The money that the homeowner receives from the lender is un-taxed, and the recipient of the money can do whatever he or she wants with funds.

This can help homeowners who already have a home and have fully paid off their mortgage, or are almost done paying off their mortgage, to receive extra money for retirement without having to work, and it’s tax-free. Also, this can help potential homeowners who are senior citizens by getting rid of the need to pay off monthly mortgage bills, and allows the potential new homeowner to receive money instead.

However, even though reverse mortgages loans allow borrowers to receive money, it is still considered a loan. The homeowner is not in risk of loosing his or her house, and the homeowner does not need to pay back the money later.

Instead, the money is paid back through the proceeds generated from the house sale. The house can only be sold if the homeowner wishes to, if the homeowner becomes deceased, or if the homeowner is absent for more than 12 months. When the house is sold, the FHA Reverse Mortgage Lender is paid back. If the house sales for more money than the FHA Reverse Mortgage Lender is owed, then the existing homeowner or heir(s) receive the difference.

Yet, what happens in the event that the money sells for less than the reverse mortgage loan due?

This can worry many people, because they may suspect that either the existing homeowner or heir(s) will have to pay back the difference to the lender. Thankfully, because of the FHA, the FHA Reverse Mortgage Lender has no worries about whether or not the home will sell lower than the amount due, and neither does the homeowner or the heir(s). The FHA removes the risk from the lender by insuring that FHA will pay back the difference to the lender, therefore everyone is safe.

By: Trinity Reverse

Article Directory: http://www.articledashboard.com

 For more information please visit our website on Reverse Mortgage

Here Is Another Great Article About "FHA Reverse Mortgage – Know The Costs of A FHA Reverse Mortgage!"

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Refinancing AN ARM Home Loan – Will Your Lender Modify Your Loan?

 From the time you brought your home with an ARM home loan the housing and mortgage market has done an "about face".  When you brought your house the housing market was booming and it was being fueled by easy credit. 

Now you want to refinance your ARM home loan but you can’t find a lender that will do it for you.  Refinancing An ARM Home Loan is next to impossible because your house may have dropped in valve and credit scores have tighten.  No more easy credit to refinance an ARM home loan.

What are you to do?  The author of the article below will discuss why you are having trouble finding a lender for refinancing an ARM home loan.

I Am Unable To Refinance My Arm Home Loan-will My Lender Modify My Loan To Help Me

There are alot of people across America that for a variety of reasons are unable to refinance their ARM home loan. If you are a home owner that is in this situation take a few minutes and read this short but informative article, it may save your home!

Why You May Be Unable To Refinance Your ARM Home Loan

Many borrowers are finding out that the specialized loan programs they used to buy their house are no longer being offered by lenders. This will manly affect those who need a sub prime loan stated income loan or a no doc loan.

Property values across the country have dropped and in some parts of the country they have dropped tremendously. If you are affected by this and your home drops to much you could end up owing more then you owe. A situation like this makes refinancing impossible!

Reduced credit score. In todays tighter credit markets mortgage lenders ow want good to excellent credit. FHA is still lending to borrowers with lower credit scores but even they now require at least a 620 or higher.

What To Do When You Are Unable To Refinance Your ARM Home Loan

If you have been turned down for one of the above reasons or for another reason altogether you really only have one option. You need to get on the phone and talk to your current mortgage lender.

Tell them you are going to have a hard time paying your loan after it adjusts and tell them you are unable to refinance and simply ask them, will you modify my loan?

What Does It Mean To Modify My Loan

In most cases the lender will modify your loan and change the terms to give either a extended fixed time frame. Or they will change it to a fixed rate loan.

Keep in mind that your lender may only be willing to do this for you if you have had a good stable payment history.

By: Darin Sewell Article Directory: http://www.articledashboard.com

If you are struggling to Refinance An Adjustable Mortgage and fear you may lose your home the FREE information at www.adjustablemortgageinfo.com will help you save your home no matter what your current situation. You owe it to yourself and your family to check it out.

Here is another article on Home Loan Modification – How To Fasten Up The Loan Modification Process ?

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Senior citizens sometimes have a real hard time living off of their savings and social security.  They just can’t keep up with the rising costs of everything.  They need another source of income and that source could be a FHA Reverse Mortgage.

The author of the article below discusses the benefits of FHA Reverse Mortgages and also touch on one of the main disadvantages of a FHA Reverse Mortgage.

Reverse Mortgages Keep Giving And Giving And Giving

Reverse mortgages remind me of the old commercial with the Energizer Bunny. Like Energizer batteries that just keep going and going and going, reverse mortgages just keep giving and giving and giving.

In case you are not familiar with what a reverse mortgage is, here is a short definition: A reverse mortgage is a unique type of loan or financial planning tool that allows senior homeowners that are 62 years or older to access the equity that they have built up in their homes. A reverse mortgage is unlike any other type of mortgage, because a reverse mortgage requires no monthly payments to be paid to the lender. It also does not require the senior homeowner to qualify for the loan based on credit or income.

The equity that is paid to the homeowner can be taken as a lump sum, a set monthly amount or a combination of the two. The money is non-taxable and does not adversely affect the senior’s social security or medicare benefits. The amount of money that a senior can qualify for is determined by the age of the youngest owner on title, the value of the property and it’s location, the interest rate at the time of application, and the amount of equity the senior has built up in the property.

Now, back to the energizer bunny analogy. The reason that I say that a reverse mortgage keeps giving and giving and giving is because if you were to opt for the monthly "tenure" payments to be made to you, you are guaranteed by the Federal Government, that you will continue to receive that same monthly amount every month for as long as you live in your home.

That’s right! You collect until you die or permanently leave your home. Even if you were to live to be 112 and you all ready received far more income from the reverse mortgage than your home is worth, you still get that money every month no matter what, as long as you remain in your home.

You, your estate and your heirs are NOT obligated to pay back the reverse mortgage lender any more money than your house can be sold for at the time of your death or when you permanently move out of your home.

So, if you outlive your life expectancy and end up receiving more money than the value of your home, the U.S. Department of Housing and Urban Development (HUD) will pay the lender for any shortfall on a HECM (FHA) reverse mortgage. Additionally, there are similar protections in place for non-FHA reverse mortgages as well.

One of the biggest criticisms you will hear when you first look into the pros and cons of getting a reverse mortgage is that the closing costs are expensive. Well at face value, that seems like a true statement.

If you compare the closing costs of a reverse mortgage to the closing costs of a traditional forward mortgage, you will find that a reverse mortgage can cost more than twice as much in fees than a forward mortgage. But lets take a moment and analyze why this is the case. Remember that GREAT benefit that we started out talking about; the perpetual monthly income that is guaranteed for as long as you remain in your home?

The reason that the government can stand behind such a huge guarantee like that, is because they have essentially required every reverse mortgage borrower to contribute to the insurance fund that will payoff the lenders in case of a shortfall. So instead of your estate or your heirs having to make up the shortfall, the insurance fund is tapped to make the lender whole.

If this insurance fund was not there, you can bet there would be few, if any, lenders making reverse mortgages with the safeguards that are in place today. Each FHA reverse mortgage that is initiated today carries a 2% fee for this insurance fund which is a part of the overall closing costs associated with a reverse mortgage.

So, yes the costs are higher for a reverse mortgage, but they are justified in order to make the reverse mortgage the valuable financial planning tool that it is for many seniors today. Many seniors would be strapped for money if they did not have the ability to tap into one of their biggest assets, their home equity.

Reverse mortgages are becoming more and more popular by the day, as more seniors are becoming educated about how they really work. There have been a lot of myths perpetuated over the years about reverse mortgages as well as a lot of improvements made to the reverse mortgage products that are currently offered.

The number of federally insured reverse mortgages made in the United States increased by 77% in the fiscal year 2006 compared to 2005. More reverse mortgage products are being developed and will be introduced to the market place in upcoming months.

By: sioris

Article Directory: http://www.articledashboard.com.  N.Sioris is a senior reverse mortgage specialist and the administrator of the reverse mortgage informational website www.letyourhomepayyou.com 1-888-269-1098

Here is another article on FHA Reverse Mortgage – Know The Costs of A FHA Reverse Mortgage!

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If you are a senior citizen and your need some extra money to make ends meet, you may want to consider a FHA Reverse Mortgage.  But not all senior citizens can get FHA Reverse Mortgages, there are some requirements.

The article below talks about the FHA Reverse Mortgage requirements.

Reverse Mortgage Requirements by Don Seibert

Since the Reverse Mortgage for Seniors program is all the rage these days, let’s take a look at what is required to qualify for and to obtain a reverse mortgage. In the United States, a person must be at least 62 years of age and own their own home to qualify for a reverse mortgage.

While most condominiums do qualify, there are some types of co-op apartment arrangements which do not. Also, lower value properties, such as smaller mobile homes, probably will not qualify either.

In a traditional mortgage, there is a great deal of emphasis on the creditworthiness of the borrower. In a reverse mortgage, that is not the case since the borrower will not be counted upon to pay off the loan. Even a pending bankruptcy may not slam the door on a reverse mortgage; however, it will probably slow the process down somewhat.

The amount of equity you have in your home is the critical factor for a reserve mortgage. It is that equity that will be ‘funding’ the payments into the future and you can be assured that the lender will get necessary appraisals and surveys, etc. to be certain of the real value of your home.

The amount of a reverse mortgage loan is determined by several factors including the Federal Home Administration (FHA) or Fannie Mae (FNMA) appraised value of the home, its location, and the age of the borrower. Fannie Mae has a limit of $200,000 for reverse mortgages closed under its program, but there are proprietary loan products from commercial lenders which can carry higher limits.

Unlike a traditional mortgage, there are no second or third mortgages allowed in a reverse mortgage deal, unless there is an increase in the value of the home after the reverse mortgage is taken out. This is because the home equity is planned to be drawn down to cover the payments (or ‘loan advances’ as they are sometimes called) and there may not be adequate equity remaining to pledge toward a secondary mortgage vehicle.

To ensure that you enter into a reverse mortgage with your eyes fully open and to ensure that you are not taken advantage of or scammed, there is a Federal requirement that you must obtain financial counseling from a source that is approved by the Department of Housing and Urban Development (HUD).

DO not discount this counseling. It is very valuable and can usually be obtained for free or at a very low cost. It is best that you get such counseling from an independent source, such as the American Association of retired Persons (AARP).

While there are obvious cash flow benefits to be derived through a reverse mortgage, there are also some drawbacks. One big one is the amount of up front costs associated with a reverse mortgage when compared to a traditional mortgage.

A loan origination fee of 2% is typical and the FHA reverse mortgage insurance is another 2%. These are in addition to the normal closing items such as appraisals, surveys, title searches, etc. that one would expect. The AARP is attempting to initiate a program with the government that would minimize the upfront costs, but that is not yet in place. Anyway, as a result of these high closing costs, you should not consider a reverse mortgage option if you plan on living in the home for less than five years or so.

A senior citizen should carefully evaluate the requirements of the reverse mortgage and consider other, more conventional options, such a home equity line of credit or a second mortgage before moving forward to obtain a reverse mortgage. In any event the financial counseling required for reverse mortgages will serve to help you with these kinds of decisions.

Do you homework before committing to any sort of refinancing option. You’ll be glad you did!

Here is another great article on FHA Reverse Mortgages – A FHA Reverse Mortgage For Senior Citizens Could Be Good!

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If you are over 62 years old and considering a FHA Reverse Mortgage you may require to go through a counseling session.  Not all states require a counseling session to acquire a FHA Reverse Mortgage.  You will need to contact a FHA Lender for your state to see if a counseling session is required in your state.

The article below is about FHA Reverse Mortgages counseling sessions in California.

Reverse Mortgages Require a Counseling Session

Senior citizens and lenders who are new the reverse mortgage business both want to know what reverse mortgage counseling is all about.

All California reverse mortgage applicants are required to go through counseling with a certified agency. Reverse mortgage counseling used to be free but congress underfunded the program and now most borrowers pay between $75 and $125 for the session.

It also used to be that the senior would drive down to a local consumer credit counseling agency to meet with a counselor. Now most reverse mortgage counseling appointments are conducted over the phone. The counselor may be in another state.

Counseling agencies are certified by the US Department of Housing and Urban Development and the Federal Housing Authority to offer counseling on the Home Equity Conversion Mortgage (HECM). Agencies might also offer counseling on any one of the non-FHA reverse mortgage programs.

Counselors go over topics including reverse mortgage interest rates; financial implications of a reverse mortgage including the addition of interest to the principal balance; fees and costs; owner occupancy requirements; borrower eligibility and calculation of the loan amount; borrower responsibilities; loan repayment; and reverse mortgage effects on taxes, public benefits, their estate and heirs.

Seniors may not like the thought of being required to undergo counseling. They might worry that it is a test that they could fail. But reverse mortgage counseling is just another way of disclosing the loan terms for the California reverse mortgage.

The senior cannot "fail". The only potential risk is that the counselor is given a strong reason to suspect that the senior is not competent and is not able to understand what is being told to them. In that case, the counselor may choose to not continue the counseling session.

Not all states require reverse mortgage counseling for all reverse mortgages. But counseling is always required for the HECM. In California, reverse mortgage counseling must take place prior to the senior homeowner financially committing to the loan.

Reverse mortgage counseling is a great double-checking procedure to ensure that lenders are being honest. Seniors must know that a reverse mortgage does not give them "free money".

A reverse mortgage is a real mortgage on their house that will eventually be repaid. But reverse mortgage counseling also helps comfort seniors who are concerned about the reverse mortgage and want to talk with an well-informed and independent third party. Contact a reverse mortgage lender and ask them to put you in touch with a reverse mortgage counselor.

Reverse-Mortgage-Info.net is a division of FutureSafe Financial specializing in reverse mortgages California and offering qualified senior reverse mortgages for those 62 years and older. Please contact Reverse-Mortgage-Info.net for more information and a risk-free reverse mortgage quote.

By Luke Helm Published: 4/8/2008 You can read another article here about FHA Reverse Mortgage Requirements.

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You may want to consider a FHA Reverse Mortgage as part of your retirement plans.  Do you want to know if your meet the FHA Reverse Mortgage requirements?

The author of this article will discuss the basic requirements of a FHA Reverse Mortgage.

What Are the Requirements For a Reverse Mortgage?

As the economy shifts, retirement benefits and savings have dwindled, reverse mortgages have become a solution for many. Reverse mortgages are a way for those ages 62 and over to eliminate some of their monthly expenses get money back from their house.

So, if you are in need to eliminate your monthly mortgage payment and get money back from your home, please read ahead to see if you can participate.. As with all loans there are requirements for a reverse mortgage. Before embarking on your new loan, always double check your credit score and records. The following is a list of reverse mortgage requirements:

1. The persons applying for the reverse mortgage must be at least 62 years old or older. If more than one person is on the title, the youngest person must also be at least 62 years old.

2. You must fully own the property (house) or have a small balance left on the mortgage. Two to four unit dwellings and FHA-approved condominiums are also eligible.

3. The home must be your primary residence

4. There are no income or credit qualifications

5. You will remain responsible for taxes

6. You will be responsible for insurance for your home

7. You will be responsible for the continued maintenance of your home

8. Closing costs can be financed in the reverse mortgage

9. No repayment as long as this home is your primary residence (Moving, transfer of ownership, etc)

When applying for a reverse mortgage, keep in mind that it is very similar to applying for a new mortgage. Therefore, be prepared to provide documentation similar to applying for a mortgage. The following things are needed in a typical mortgage application.

* Documented income from the last 30 days. (Note, there are no income requirements)

* Monthly investment statements for the last 3 months.

* Bank statements for the last 3 months.

* Federal Tax Returns for the last two years.

* Bankruptcy filings, if any.

* Documents showing ownership and value of any high worth assets.

Author: Joe C Bailey To find out more on reverse mortgages, please visit us at here

Article Source: http://EzineArticles.com/?expert=Joe_C_Bailey

Do You Want To Know The Costs Of A FHA Reverse Mortgage?

Comments:  Now you know the basic requirements of a FHA Reverse Mortgage, would you like to know the costs associated with a FHA Reverse Mortgage? 

Here is a very informative article on the costs of FHA Reverse Mortgage.

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The author of this article will give you a good idea of the costs involved in a FHA Reverse Mortgage.

My Reverse Mortgage Costs How Much?

As a short term financing tool, reverse mortgages are an expensive proposition. However when used long-term, those expenses are spread throughout the life of the loan, makinga reverse mortgage a viable solution to supplement retirement income, pay off a mortgage and have extra cash available to enjoy life to the fullest without the worry of mortgage payments. So, what costs are involved and why do the fees seem so high?

When looking at a reverse mortgage estimate, one will find that fees are broken down into three categories; loan origination fee, HUD Mortgage Insurance Premium (MIP), and other costs.

Fees are based on the home value or lending limit, whichever is less. Currently, due to the passing of the American Recovery Act of 2009, the national reverse mortgage lending limit is $625,500. These fees are further broken down on the Good Faith Estimate (GFE).

To begin, the loan origination fee is the fee that is paid to whomever originates your reverse mortgage for you. That person should be a reverse mortgage specialist and will help guide you through the entire reverse mortgage process.

The origination fee is heavily regulated by HUD/FHA. The guidelines for the origination fee are that originators can charge 2 percent of the first $200,000 of appraised value or lending limit (whichever is less), and 1 percent of any portion thereafter, with a maximum of $6,000 and a floor of $2,500. For example, a home valued at $300,000, would have a maximum origination fee of $5,000.

The next fee to explore is the upfront HUD Mortgage Insurance Premium (MIP), which is paid to HUD/FHA. This fee, although high, is the main reason in which the Home Equity Conversion Mortgage (HECM) Program is able to exist.

The amount of the fee is 2 percent of the lesser of the home value or lending limit. For example a $300,000 home would have an upfront MIP of $6,000.

This fee works in a couple ways. First, it’s like an insurance policy for the lender. Reverse Mortgages are considered "non-recourse" loans, which means the homeownercan never owe more than the value of their home. Since the loan balances are growing rather than shrinking like traditional mortgages, it is possible that the amount owed could be greater than the home’s value.

If that were the case and a maturity event occurred, the lender would recover their loss with the pool of money created by the upfront MIP. Secondly, the MIP helps protect the borrower as well. Let’s say for some reason, the borrowers reverse mortgage lender went out of business. HUD would step up and make sure that all funds available to the borrower, whether it be a line of credit or monthly payment, would still be available to that borrower. It’s a necessary evil that helps stimulate the appetite of investors looking to invest in reverse mortgages.

The last set of fees seen on the reverse mortgage estimates page is other fees.This refers to typical loan costs, such as title, escrow, appraisal, notary, etc. These fees are paid to the third parties involved who help with certain parts of the transaction. Lenders require title and escrow to make a smooth transaction and to make sure that all previous liens, if any, are satisfied prior to establishing a new reverse mortgage on the property.

In addition, the lender wants to verify the homevalue, which is why an appraiser will visit the property and provide the lender with his/her best estimate of value based on the condition of the property as well as comparable properties in the area.

In addition to actual hard, upfront fees incurred on the loan, other costs include the interest rate that is paid, the ongoing 0.5% HUD MIP fee and monthly service fees.These items will be explored in our next article: Relevancy of Rates on Reverse Mortgage Costs.

In conclusion, reverse mortgages are designed for senior homeowners who want to stay in their home long-term. Although certain situations may dictate the reverse mortgage as a viable short-term solution, however it’s best to consider a reverse mortgage as a long-term loan. When looking into a reverse mortgage, make sure the reverse mortgage professional that you’re working with fully explains all fees involved. It is of paramount importance to not only understand how the reverse mortgage works, but also all fees involved.

Author: Josh Borba MLS Reverse Mortgage is a leader in the reverse mortgage industry. Offering fast, friendly and professional service. We offer all HECM (Home Equity Conversion Mortgage) reverse mortgage products. We are an FHA approved loan correspondent.Reverse Mortgage

Reverse Mortgage Calculator

Article Source: http://EzineArticles.com/?expert=Josh_Borba

Comments:  As you can see the costs of a FHA Reverse Mortgage can add up.  You need to use a FHA Reverse Mortgage for a long term source of income and not just a short term source to take a vacation and other small expenses.

If you are still considering a FHA Reverse Mortgage, you can find another article on FHA Reverse Mortgages here.

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A FHA Reverse Mortgage is not for everyone.  You should own your home free and clear or owe very little to make a FHA Reverse Mortgage work for you.  FHA Reverse Mortgages are a way for you to get the equity out of your home and still live in your home.

The author of this article will give you the benefits of FHA Reverse Mortgages.

What Are the Benefits of a Reverse Mortgage Loan?

Reverse mortgage loans have been around for a while, but until recently they haven’t been as popular as they are now. These types of loans are designed for use by senior citizens, 62 years of age or older.

The general idea is that a lot of people have lived in their homes for years, paid their mortgages, and built up quite a lot of equity. They don’t want to move, yet they can’t have the benefit of the equity they’ve created.

Reverse mortgage loans let them tap into that equity.

In some sense, reverse mortgage loans are kind of like home equity loans, which let you get money out of your house without selling it. Unlike home equity loans, however, there are no minimum or credit requirements.

The reason these types of mortgages are called "reverse" mortgages is because instead of you paying the lender, the lender is paying you. As the lender pays you, your equity in the house decreases. In effect, you’re creating a larger and larger debt that your house will eventually be sold to cover.

You can use this money for anything you want, but usually lenders don’t want there to be any other mortgages in place on the property. So, reverse mortgages are available for folks who own their homes free and clear.

Getting the proper counseling for reverse mortgages is important. You can get counseling from a HUD approved counseling agency. You don’t have to meet with these people, just talk with them on the telephone, if that’s easier for you.

Counselors will tell you about several options you might have. They will want to discuss other avenues to get money (other than taking it out of your house), property tax deferral programs, if there are any, and the financial and tax implications of the reverse mortgage.

As you can see reverse mortgages are not for everyone! But if you have a lot of equity in your house and you don’t have a lot of other income coming in, a reverse mortgage might be the ticket.

This is not something you just want to jump into. You’ve worked long and hard to build up the equity in your house, and if you’re like many Americans, your home’s equity is by far your largest investment. You certainly don’t want to squander it.

So, you want to talk with a number of potential lenders, a counselor, and family members who might be able to help you think through all of this. Once you spend the equity in your home, it’s gone. This might work for you, or it might now, but a reverse mortgage certainly is worth looking into.

Author: Patricia Pearce To learn more about finding the best mortgage for you and your needs, visit my blog, Best Mortgage Guide.

Patricia Pearce is a consumer advocate and educator. She runs several online sites devoted to empowering consumers to keep more of their money.Article Source: http://EzineArticles.com/?expert=Patricia_Pearce

Comments:  The thought of a mortgage company paying you sounds good since you have been paying them for so long.  FHA Reverse Mortgages are increasing in popularity because of the economy and also because they are being advertised on TV by the FHA Reverse Mortgage companies.

If this article have peaked your interest you can get more information and the costs of FHA Mortgages by reading this article  FHA Reverse Mortgage.

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