Mortgages Warren PA 16365Warren PA 16365

How to Search for the best Mortgage in Warren Pennsylvania

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 Warren Pennsylvania 16365, 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 Warren Pennsylvania 16365.

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 Warren Pennsylvania 16365

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 Warren Pennsylvania 16365.

Surrounding Areas In Pennsylvania

  • How to Search for the best Mortgage in Spring Mills Pennsylvania
  • How to Search for the best Mortgage in Pocopson Pennsylvania
  • How to Search for the best Mortgage in Hellertown Pennsylvania
  • How to Search for the best Mortgage in Sharon Pennsylvania
  • How to Search for the best Mortgage in Dover Pennsylvania
  • How to Search for the best Mortgage in Leechburg Pennsylvania
  • How to Search for the best Mortgage in New Hope Pennsylvania
  • How to Search for the best Mortgage in Shickshinny Pennsylvania
  • How to Search for the best Mortgage in Coal Township Pennsylvania
  • How to Search for the best Mortgage in Albion Pennsylvania
  • Warren Information

    Video: Mortgages in Warren PA

    • Warren Real Estate - Warren PA Homes For Sale | Zillow


      Zillow has 112 homes for sale in Warren PA. View listing photos, review sales history, and use our detailed real estate filters to find the perfect place.
    • Warren County, NJ - NJ.com


      Warren County NJ breaking and regional news, sports, weather, entertainment, opinion and living. Find out about Warren County New Jersey's nightlife and restaurants ...
    • Mortgage Rates | Homes.com


      Find and compare home loan interest rates and current mortgage rates from mortgage companies. Includes mortgage tools: refinance, mortgage calculators.
    • IQS - Search Warren County, NJ


      Info Quick Solutions, Inc. | 7460 Morgan Road Liverpool, NY 13090 | E-mail: [email protected]
    • The Coming Collapse of the Middle Class with Elizabeth ...


      Distinguished law scholar Elizabeth Warren teaches contract law, bankruptcy, and commercial law at Harvard Law School. She is an outspoken critic of ...
    • Warren Buffett - Wikipedia


      Warren Edward Buffett (/ ˈ b ʌ f ᵻ t /; born August 30, 1930) is an American business magnate, investor, and philanthropist. He is considered by some to be one of ...
    • County Bank - Mortgages, Checking, Home Equity Loans


      County Bank is southern Delaware’s local choice. Providing the community mortgages, checking, savings and home equity loans. Free mobile and online services…We ...
    • County Clerk - Warren County


      Warren County Clerk's Office. Dear Friends… A very warm welcome to the Office of the Warren County Clerk!! With duties and responsibilities as Clerk of the Supreme ...
    • Elizabeth Warren - Wikipedia


      Assumed office January 3, 2013 Serving with Ed Markey: Preceded by: Scott Brown ... This article is part of a series about Elizabeth Warren
    • 840 Highland Ave, Morrisville, PA 19067 | MLS #6943324 ...


      Zillow has 25 photos of this $587000 5 bed, 3.0 bath, 2925 sqft single family home located at 840 Highland Ave built in 1930. MLS # 6943324.