Reverse mortgages are seen as a way for seniors to tap into their current homes as a source of income. By drawing from the equity they already have, they can pay off bills, make improvements to their current residence in Ft Ashby West Virginia , or even take a well-earned vacation. There is one option that most do not even consider: using a reverse mortgage for the purchase of a newer property.
Understanding a Home Equity Conversion Mortgage
In order to see how using a reverse mortgage for purchase of a newer property works, you first must understand the Home Equity Conversion Mortgage (HECM). The HECM is still relatively new, but it provides a way for those who are 62 years or older to borrow against the value of the home. With approval, the borrower gains access to funds without having to make monthly payments. Repayment of the loan does not occur until the borrower either passes away or sells the property.
This loan is not an option for everyone. In fact, the guidelines stipulate a minimum age of 62 years old. The borrower must also either own their home outright or have a large amount of equity built up in Ft Ashby West Virginia .
Using Reverse Mortgage for Purchase
For some older Americans, the idea of living closer to family members is ideal, but they do not necessarily want to give up their existing home. If this is the case, they may apply for a reverse mortgage. The borrower must occupy this second home for a set portion of the calendar, and the original residence, which the loan is against, must be the borrower’s primary residence in Ft Ashby West Virginia
When using a reverse mortgage for purchase, there are some limitations. For example, this type of loan only covers 47 to 52 percent of the purchase price. It is the borrower’s responsibility to make up the difference. This money can come from a retirement account, savings, or a gift. The actual amount borrowed depends on the age of the youngest borrower, current interest rate, mortgage insurance premium, and the home’s value at appraisal.
Additionally, only certain types of residences qualify for a reverse mortgage. These include single-family homes and two to four unit homes where the borrower occupies one of the units. For condominiums, the U.S. Department of Housing and Urban Development requires preapproval. In addition, manufactured homes must also have FHA preapproval. The borrower must also obtain a certificate of occupancy for any new construction.
A reverse mortgage is a great way for seniors to get a second home closer to family. As with a traditional HECM, there are no monthly payments due. A single, balloon payment, is due at the sale of the home, when the last borrower moves out or passes away. This payment is a total of the principle plus interest. If the home sells for more than this amount, the borrower, heirs, or the estate retains the remaining equity. Should the home appraise and sell for less than the amount owed, there is a guarantee of no personal liability. Lenders are insured against this type of loss in Ft Ashby West Virginia .
Surrounding Areas In West Virginia
Ft Ashby Information
Video: Mortgages in Ft Ashby WV
HUD's Local Offices. HUD is organized in 10 Regions. Each Region is managed by a Regional Administrator, who also oversees the Regional Office. Each Field Office ...
Zillow has 227 homes for sale in Lewisville TX. View listing photos, review sales history, and use our detailed real estate filters to find the perfect place.
Online legal research service for legal and law related materials and services, including searches of United States and international legal materials, journals ...
Navy Federal Credit Union is an armed forces bank serving the Navy, Army, Marine Corps, Air Force, Coast Guard, veterans, DoD and their families.
Median real estate property taxes paid for housing units with mortgages in 2015: $1,324 (0.8%) Median real estate property taxes paid for housing units with no ...
Offers investment, banking, and insurance service to the individual and corporate client.
Find top rated real estate agents in your local area. Browse through Movoto's top agents.
According to our research of Illinois and other state lists there was 1 registered sex offender living in Clarendon Hills, Illinois as of July 14, 2017. The ratio of ...
Zillow has 339 homes for sale in Mount Vernon IL. View listing photos, review sales history, and use our detailed real estate filters to find the perfect place.
From millions of real job salary data. 0 salary data. Average salary is Detailed starting salary, median salary, pay scale, bonus data report