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A HUD reverse mortgage is a low-interest federally regulated loan that allows senior homeowners to convert a portion of the value in their home into tax-free cash. You can apply for one through an insurance company.
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Who may wish to take advantage of the HECM reverse mortgage?
The term HECM means Home Equity Conversion Mortgage. Unlike other reverse mortgages the HECM is a reverse mortgage for seniors that follows all of the guidelines of FHA and HUD.
Why are there 2 notes and mortgages in a reverse mortgage?
The first note belongs to the mortgage lender and the second to HUD. By doing this, other loan companies are prevented from attaching a 2nd lien to the home, because the secondary lien position is occupied by HUD. Visit the related link for more reverse mortgage information.
What are the key features of a HUD reverse mortgage?
There are a few key features to HUD (U.S. Department of Housing and Urban Development) reverse mortgage. It is a special type of home loan that differs by allowing borrowers to not have to repay the loan until they no longer use the home as their main residence.
Who can provide a Reverse Mortgage?
If you're looking into the government insured reverse mortgage, it's important to use a HUD approved lender that's capable of offering the reverse mortgage program. The Department of Housing and Urban Development publishes a list of approved HUD lenders that you can search on their website. Remember to check the box that limits the search to lenders who have completed a HECM loan within the past 12 months. This will give a better list of which companies really specialize in reverse mortgages and which ones don't.
What is the HUD insurance paid on a mortgage loan?
The insurance or MIP paid on a HUD loan goes to HUD and they pay the lender if you default on your home loan. FHA/HUD has a Mutual mortgage ins. program that the money goes into.
Are there 2 deeds of trust and 2 notes on a reverse mortgage?
There can be if the reverse mortgage is guaranteed by HUD. One set would be executed by the lender, the other with HUD in case the lender goes under.
Who may wish to take advantage of the HECM reverse mortgage?
The term HECM means Home Equity Conversion Mortgage. Unlike other reverse mortgages the HECM is a reverse mortgage for seniors that follows all of the guidelines of FHA and HUD.
Why are there 2 notes and mortgages in a reverse mortgage?
The first note belongs to the mortgage lender and the second to HUD. By doing this, other loan companies are prevented from attaching a 2nd lien to the home, because the secondary lien position is occupied by HUD. Visit the related link for more reverse mortgage information.
What are the key features of a HUD reverse mortgage?
There are a few key features to HUD (U.S. Department of Housing and Urban Development) reverse mortgage. It is a special type of home loan that differs by allowing borrowers to not have to repay the loan until they no longer use the home as their main residence.
Where can I find information about a CT reverse mortgage?
You can get information from HUD (Department of Housing & Urban Developement). You can also get information from your bank. Then there are tons of online resources that offer reverse mortgage information services or both.
How can I help my mother get a HUD reverse mortgage?
A reverse mortgage is a recent option available to retired homeowners. The HUD website is a great source of info: www.hud.gov/offices/hsg/sfh/hecm/rmtopten.cfm Also, have a look at: en.wikipedia.org/wiki/Reverse_mortgage which gives a great overview of the instrument itself.
What kind of home is approved to be an FHA home?
In regards the the Reverse Mortgage, or Senior Reverse Mortgage, all you need to qualify is for the house to be appraised by a HUD / FHA approved appraiser. You are then eligible to receive a reverse mortgage, so long as you have enough equity in the home, and you are age 62 pr older. In many states, the Reverse Mortgage or HECM (Home Equity Conversion 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.
Who can provide a Reverse Mortgage?
If you're looking into the government insured reverse mortgage, it's important to use a HUD approved lender that's capable of offering the reverse mortgage program. The Department of Housing and Urban Development publishes a list of approved HUD lenders that you can search on their website. Remember to check the box that limits the search to lenders who have completed a HECM loan within the past 12 months. This will give a better list of which companies really specialize in reverse mortgages and which ones don't.
What is the HUD insurance paid on a mortgage loan?
The insurance or MIP paid on a HUD loan goes to HUD and they pay the lender if you default on your home loan. FHA/HUD has a Mutual mortgage ins. program that the money goes into.
What exactly is a reverse mortgage scam?
Reverse mortgage scams occur when outside people try to charge a large some of money for free information. An example would be those people who try to charge for the listing of HUD homes and information when this information is available for free.
Does a spouse have to sign for a reverse mortgage?
At the moment there are very few investors willing to purchase reverse mortgage loans with a non-borrowing spouse due to the AARP / HUD lawsuit. It's advised that both you and your spouse go on the loan together as the reverse mortgage becomes a balloon payment when the last surviving borrower passes.Some helpful reading on this topic here:Reverse Mortgage with Spouse Under 62 Leaves Vulnerabilityhttp://www.allrmc.com/blog/reverse-mortgage-with-spouse-under-62-leaves-vulnerability
What are some income and age requirements for HUD reverse mortgages?
Age requirements depend on your state and the current mortgage you have. There are more requirements that are needed to meet in regards to income and the value of your home. There is no discriminatory on seniors or race. Problems do arise if the borrower decides to sell, move or dies after signing papers for a HUD reverse mortgage. There are some downsides to going this route but is a good choice for many.
