by: Charles Kirkendall
HUD reverse mortgages can be a great tool for Seniors that are looking for additional funds for retirement. Through a HUD reverse mortgage, seniors can tap into the equity from their homes without having to make repayments.
HUD Reverse Mortgage Eligibility
Homeowners must meet the following criteria in order to be eligible for a HUD reverse mortgage:
- Homeowner must be age 62 or older.
- The home must be owned free and clear or have a mortgage balance that can be paid from equity.
- The home must be a principal residence.
- The property must be a single-family home, a one-to-four unit dwelling with one unit occupied by the applicant, a manufactured home (mobile home), or a unit in condominiums or Planned Unit Developments.
- The property must meet minimum property standards.
Homeowners that qualify can receive payments in a lump sum, on a monthly basis, or on an occasional basis as a line of credit. At a later date the payment options can be restructured if circumstances change.
Guidelines on HUD Reverse Mortgage Amounts
The amount that can be borrowed on a HUD reverse mortgages is determined by the following criteria:
- The borrower's age - The older the borrower the more that can be borrowed against the value of the home
- The loan interest rate - Obviously the lower the interest rate the more that can be borrowed.
- The home's value - There is no hard limit for home value to qualify for a HUD reverse mortgage, but the amount that may be borrowed is capped by the maximum FHA mortgage limits for an area. This means that owners of a high priced home can't borrow any more than the owners of homes valued at the FHA limit.
There are no asset or income limitations on borrowers receiving a HUD reverse mortgage.
Unlike ordinary home loans, a HUD reverse mortgage does not require repayment as long as the home remains the borrowers primary residence. When the home is sold the Mortgage company recovers their principal, plus interest, and the remaining value of the home goes to the homeowner or to his or her survivors. Should the sales proceeds not cover the amount owed, HUD will pay the mortgage company for any shortfall.
The Federal Housing Administration, which is part of HUD, collects an insurance premium from all borrowers to provide this coverage. Typically the mortgage company pays for this insurance and charges it to the borrower's principal balance. This FHA reverse mortgage insurance can make HUD's reverse mortgage program less expensive to borrowers than private programs without FHA insurance.
About The Author
Charles Kirkendall writes about reverse mortgages and other Senior financial issues. Visit http://www.reverse.settle-today.com for more information and resources on reverse mortgages.
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The Facts About Second Mortgages
The Facts About Second Mortgages
by: Joseph Kenny
Your home: It's probably your biggest asset. Having a home to back you up when you need a loan is one of the greatest advantages of home ownership. In recent years, there has been a major increase in the amount of people looking to use their homes as a way to get access to extra money when they need it most. One of the best ways to do this is through a second mortgage.
A second mortgage is exactly what it says it is - a loan made in addition to your first mortgage, and it's based on the amount of equity you have built into your home. Many people use them to fund home renovations, to pay off credit cards, or to put a child through college. Since you've already been through the process once, the underwriting required to get a second mortgage is much simpler than it was the first time around, and the cost of the transactions involved will be significantly lower. This usually makes up for the fact...
The Facts About Second Mortgages
Mortgages > The Facts About Second Mortgages
Deciding Upon a Refinance Lender
Deciding Upon a Refinance Lender
by: John Mussi
Finding a good lender to refinance your mortgage can be almost as important a decision as the actual mortgage you choose. In order to make a wise selection of a refinancing lender you should make sure that you do the following four things.
Know the objective of your mortgage refinance
Do you want to lower your current interest rate? Refinancing your mortgage can be profitable if your current mortgage is 2% higher than the prevailing rates. You can find out the prevailing rates by checking with your current lender or any bank. Newspapers will also print the daily rates.
Moving from an adjustable rate mortgage to a fixed rate mortgage can save you money if you time it well. When mortgage rates start creeping up, consider looking for a refinance lender.
The mortgage refinance lender you pick will want to know your reason for refinancing to aid in the process of finding the best...
Deciding Upon a Refinance Lender
Mortgages > Deciding Upon a Refinance Lender
Rhode Island Mortgage Loans
Rhode Island Mortgage Loans
by: Mark Lambie
Whether you live in the Blackstone Valley, Block Island, East Bay, South County, Warwick, Providence, or Newport you know that Rhode Island offers so much to you. "Little Rhodey" is rich in history and her residents love living there. You can too as Rhode Island Mortgage Loans are widely available for home buyers. Let's explore two popular loan options available to you.
1. Fixed Rate - Loan rates are fairly stable right now. You can lock in a fixed rate for a 15 year or 30 year mortgage; some financial institutions are even offering 20 year term mortgages too.
2. Variable Rate - Usually as much as one point lower than a fixed rate loan, variable rate mortgages allow for home buyers to get more house for the money or save on monthly payments. Rates can fluctuate, so make sure limits are in place to keep your loan from increasing too rapidly or too high.
Other, less known Rhode Island Mortgage...
Rhode Island Mortgage Loans
Mortgages > Rhode Island Mortgage Loans
What are VA loans?
What are VA loans?
by: Mark Lambie
VA loans are basically mortgages or home loans geared towards ex-military servicemen and women.
The VA loan programme was created in 1944, and was initially known as the Servicemen's Readjustment Act, to help returning servicemen settle down and purchase their first home.
There are, on average, over twenty-five million American who complete their military obligations each year.
You are eligible for a VA loan if you are veteran who has been honourably discharged.
The eligibility requirements vary, depending upon whether you served full-time or in the reserves, so check with your lender.
A VA loan will generally guarantee around 25% of
the total home loan, up to $89,912.00.
VA loans are often made by a variety of lenders, such as banks and savings and loans institutions.
These loans act more as protection for the lender against loss at...
Mortgages > What are VA loans?