Does a reverse mortgage work for a government loan?

Which companies offer mortgage loan modification?

"Every mortgage lender or mortgage servicer offers mortgage loan modification. There are also many third party companies that offer mortgage loan modification, but work with them at your own risk."

What is a reverse mortgage and how does a reverse mortgage work?

Designed for seniors, a reverse mortgage is a loan that allows the homeowner to convert some of the equity in their home into cash or monthly income, while retaining home ownership. A reverse mortgage, also known as a Home Equity Conversion Mortgage (HECM) is a relatively new product. A reverse mortgage provides unique benefits for its target market eg: someone over 62 who lives in his/her primary residence, who has substantial equity in his/her home, and who has little or no income. A reverse mortgage is a loan against the equity in your home that you don't need to pay back for as long as you live in the home. Eligibility for a reverse mortgage is set by the Federal Government; The Federal Housing Authority FHA tells HECM lenders how much they can lend you, based on your age and your home's value. The mortgagor is not required to make any payments, the home is owned by the bank upon the death of the mortgagor and the transaction is structured so that the loan amount will not exceed the value of the home at that time. That feature should raise a red flag. That means the homeowner isn't given the fair market value of the property initially because the bank must figure in the interest over the possible life of the loan. Good credit is not relevant because the home provides the security for the loan. In some cases the heirs have the option to pay off the mortgage when the owner dies but the cost can be extremely high. This type of mortgage has higher up front fees than conventional mortgages and those costs become part of the original mortgage which accrues interest at a rapid rate. This is an important factor to consider because the mortgage must be paid in full if the owner decides to sell the property or if their heirs desire to keep it after their death. Especially troublesome is the fact that many reverse mortgage lenders will send a loan officer to the senior's home to sign the loan documents and the senior has no benefit of having another pair of eyes and ears present at the transaction. 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 own home outright or only owe a small amount on your existing mortgage loan that can be paid off at closing with the proceeds from the reverse mortgage. In general, a reverse mortgage is tax free and has no income restrictions. Additionally, most payments from a reverse mortgage won't affect Social Security or Medicare benefits. In fact, many seniors use a reverse mortgage to supplement their Social Security and Medicare, allowing for more financial security. Reverse mortgages also work in a purchase transaction. You can purchase a home without making a single monthly mortgage payment. This option allows seniors to move close to family when the need arises. There are various ways seniors can benefit with a reverse mortgage including receiving additional tax-free monthly income or a lump sum payment, cancelling a current mortgage payment, funding long term care insurance and in-home care, renovations and repair work to their homes. In many states, the Reverse Mortgage, or Senior Reverse Mortgage, allows for a new home purchase with the use of reverse mortgage funds, this rule does not apply nationwide. Although HUD and the FHA recently passed the HECM Reverse Mortgage home purchase program, allowing you to purchase a new home with reverse mortgage proceeds, borrowers in Texas are not yet eligible. Rules in individual states may vary. Please see a specialist in your own state for more details.

Is a Reverse Mortgage Safe?

Taking out a reverse mortgage is easy. The requirements are few and the sum of money you can borrow depends on your age and the unpaid balance of the original home loan. The reverse mortgage loan will be yours to use for any reason. Buy a new car; go on world-wide vacation, remodel the house, or buy new furniture. The reverse mortgage loan has no stipulations. It is yours, free and clear, to do with as you like.However, before the lender grants the loan, there are stipulations that must be met. Borrowers who apply for a reverse mortgage must get counseling to be sure that they understand every aspect of the loan and what it entails before the loan is granted. With this type of stipulation it is obvious that a reverse mortgage is not as safe as it sounds.1. Understand that to qualify for a reverse mortgage you must own the home and be at least 62 years old. If you do not own the home outright, the remaining mortgage must be a small amount. This is important because the house will be paid off in full by the reverse mortgage loan.2. In essence, you are paying off the original loan and replacing it with the the reverse mortgage loan. In this case, the bank becomes the beneficiary of your home when you die.3. Monthly home payments, as you knew it, are no longer required. You do not have to repay the amount of the reverse mortgage loan either. You own the house free and clear. The money you receive on the reverse mortgage is yours to use without restrictions.4. However, there is one stipulation required prior to getting a reverse mortgage. Keep this in mind, it is of the utmost importance, because you can stand to lose your home if you do not understand. One of the stipulations for a reverse mortgage loan is (1) you must live in the home. (2) pay your homeowner taxes. (3) keep your home insurance up to date. (4) take care of the property, trim bushes and cut the grass.5. There is the catch! If you or your estate do not adhere to the steps above, your home can go through a foreclosure, and the bank will claim ownership of the house. You could find yourself, at the age of 75 or 85 or older, with no home and no place to live. You will be homeless.There are pitfalls to a reverse mortgage. These will be explained during counseling. Unless you understand every word, do not sign the reverse mortgage loan. It is good practice to take someone with you-do not go alone. Never sign any contract, no matter how good it sounds, if you do not completely understand what you are signing. Heed this warning.

Can you explain how reverse mortgages work in California?

A reverse mortgage in California is a type of loan for homeowners aged 62 and older that allows them to convert part of their home equity into cash without selling their home. The loan is repaid when the homeowner moves out, sells the home, or passes away. Interest accrues on the loan balance over time.

What are the available mortgage loan jobs in the current job market?

Some available mortgage loan jobs in the current job market include loan officers, underwriters, processors, and mortgage brokers. These professionals work in various capacities to facilitate the mortgage loan process for individuals and businesses.

Can you explain how reverse mortgages work in detail?

A reverse mortgage is a type of loan for homeowners who are 62 years old or older. Instead of making monthly payments to the lender, the lender pays the homeowner. The loan is repaid when the homeowner moves out, sells the home, or passes away. Interest is added to the loan balance over time. Reverse mortgages can be a way for seniors to access the equity in their homes without having to sell the property.

What is reverse mortgage and how does it work?

A reverse mortgage, also known as a Home Equity Conversion Mortgage (HECM) is a relatively new product. A reverse mortgage provides unique benefits for its target market: someone over 62 who lives in his/her primary residence, who has substantial equity in his/her home, and who has little or no income. A reverse mortgage is a loan against the equity in your home that you don't need to pay back for as long as you live in the home. If an individual is a senior citizen and does not intend on moving out of his or her home for some time, a reverse mortgage may be an option worth considering. Eligibility is set by the Federal Government; The Federal Housing Authority FHA tells HECM lenders how much they can lend you, based on your age and your home's value. However, the up front costs and bank fees can be very high. The homeowner is responsible for maintenance, repairs, municipal fees, insurance and taxes.You qualify for a reverse mortgage if:You are over the age of 62.You live in the house as your primary residence.You own your house in full or are able to pay the balance on your home with the proceeds of the reverse mortgageIn many states, the Reverse Mortgage, or Senior Reverse Mortgage, allows for a new home purchase with the use of reverse mortgage funds, this rule does not apply nationwide. Although HUD and the FHA recently passed the HECM Reverse Mortgage home purchase program, allowing you to purchase a new home with reverse mortgage proceeds, borrowers in Texas are not yet eligible. Rules in individual states may vary. Please see a specialist in your own state for more details.

What is the difference between mortgage and reverse mortgage?

A mortgage and a reverse mortgage are both types of home loans, but they work in opposite ways. A mortgage is a loan that helps a borrower purchase or refinance a home. The homeowner borrows money from a lender and repays it through monthly installments, which include principal and interest. Over time, as the borrower makes payments, the loan balance decreases, and home equity increases. If the borrower fails to make payments, they risk foreclosure. A reverse mortgage, on the other hand, is designed primarily for homeowners aged 62 or older who want to convert their home equity into cash. Instead of making monthly payments to the lender, the homeowner receives payments from the lender—either as a lump sum, monthly payments, or a line of credit. The loan balance increases over time as interest accrues, and repayment is not required until the homeowner moves out, sells the home, or passes away. However, the homeowner must continue paying property taxes, insurance, and maintenance costs to avoid foreclosure. In simple terms, a mortgage requires the homeowner to pay the lender, while a reverse mortgage allows the homeowner to receive payments from the lender using their home equity.

Do reverse mortgage calculators work accurately?

A reverse mortgage calculator is only as accurate as the information that is imputed by the user. Consider it as an educated guess or a ball park estimate.

What does a reverse mortgage adviser do?

A reverse mortgage adviser usually tells people how much their homes are worth. Sometimes they work for financing companies or banks, and do estimates on homes.

What is a reverse mortgage and how does it work?

In short, a reverse mortgage is a mortgage that does not require any mortgage payments to be made, and the funds received from the loan can be received via a lump sum of money, an equity line of credit, or monthly payments made to you from the lender. Most of these mortgages are backed by FHA's HECM program. There are many good detailed articles on what they are, as well as videos. Wikipedia has a good section on this, i have a full guide on my site as well. The short version of how it works is that you must be at least 62 years old to qualify, and the loan size is based on the current interest rates, the location of the home, and its value. Your age is factored in as well as the loan is based on life expectancy. A reverse mortgage can only be done on a primary residence. Its a non-recourse loan meaning that only the property is offered as collateral, the lender cannot pursue you or your estate for any shortage to the payoff if the loan size ever exceeds the value of the home. You can never be forced to move as long as you live there.

What is a good mortgage company to work with to get a home loan if I have bad credit?

You can try going through the FHA for a loan.