Is a Reverse Mortgage Right for You?
Seniors are Interested in Security in Housing:
Children of senior citizens can help their parents.
If you’re a child of a senior citizen and want to protect them; offer them a means of additional monthly income and provide them with the comfort of staying in their home for their remaining life and this is the program for them. You will help them to maintain dignity!
How can you do that?
The fundamental difference between a reverse mortgage and a conventional mortgage is that in a conventional mortgage, you pay a monthly mortgage payment on your mortgage loan, and in a reverse mortgage, no payments are made to the bank, instead the bank pays you a monthly sum of money. These payments are drawn against the equity you have in your mortgage.
This monthly payment that the senior citizens receive must be paid back at a later date, hence, after you cease to live in your home as a primary residence or you pass away. To be eligible for a reverse mortgage, you need to be at least 62 years old, occupy the home as a primary residence and either own your home out right or owe only a small amount on your existing mortgage.
So, why would FHA do this type of loan? Well, they understand that there are homeowners who could use the money on a monthly basis for living expenses and they also are clear that most homes will grow in equity over time. Because of this equity growth over time, lenders can feel comfort in knowing that there will be equity in the home to pay back the loan when the homeowner passes away or no longer is the primary resident.
Seniors get to stay in the home forever!
Another nice feature about this loan is that the home owner can stay in the home for the duration of their life. Never any fear that the home will be taken away from them. Won’t happen!
Purchase a new home with a reverse mortgage!
In many states a senior can use the reverse mortgage to purchase a home and still get monthly payments. If you want to find out more information about this type of reverse mortgage, you can talk to one of our team members or mortgage bankers at LendPlus Financial. We can help you go over all the different options and get a preview from FHA on the subject. So, if the current home the senior citizen live in is in ill repair, you can sell that home and purchase a new home for them and still do the reverse mortgage. You can fell safe in knowing that the new home is up to code and has all the newest amenities and secure features you would want.
Remember, if you are the child of a senior citizen, give us a call, we can go over the program with you in detail while your senior is with you. That way , you can feel safe in helping your mom or dad protect their interest.