A Home Equity conversion mortgage (hecm), commonly known as a reverse mortgage, is a Federal housing administration (fha) insured 1 loan. Reverse mortgages enable seniors to access a portion of their home’s equity without having to make monthly mortgage payments. 2 The loan generally does not become due until the last surviving homeowner permanently moves out of the property or passes away.
A CHIP reverse mortgage lets you change the home equity and savings balance by turning some of your equity into cash. Unlike many mortgage-based financial products, you’re not obligated to make any payments until you choose to move or sell.
There are many factors to consider before deciding whether a reverse mortgage loan is right for you. The information below will assist you with the question of, "How does a reverse mortgage work" as well as outline the steps needed to access your home’s equity.
Qualification. Q: Does my home qualify? A: Eligible property types include single-family homes, 2-4 unit properties, manufactured homes (built after June 1976), condominiums, and townhouses.Co-ops do not qualify. Top ^ Special Requirements. Q: Are there any special requirements to get a reverse mortgage? A: You must own a home, be at least 62, and have enough equity in your home.
A cash-out refinance is a way to both refinance your mortgage and borrow money at the same time. You refinance your mortgage and receive a check at closing. The balance owed on your new mortgage will be higher than your old one by the amount of that check, plus any closing costs rolled into the loan.
How does a reverse mortgage work? A reverse mortgage works similar to a home equity loan in that a reverse mortgage requires that you use your home as collateral. You keep the title to your house.
Reverse Mortgage Lenders In Florida Miami-dade County Reverse Mortgage Lenders – florida fha reverse mortgage lenders for seniors If you are a Florida homeowner age 62 or older and have paid off your mortgage or paid down a considerable amount, and are currently living in the Florida home, you may participate in FHA’s Home Equity conversion mortgage (hecm) program.Apply For Reverse Mortgage Online When you apply for a reverse mortgage, you typically fill out an initial form online or contact the lender directly to express interest. They walk you through your options. After that, you usually meet with an independent counselor who explains the reverse mortgage process and helps you make the right choice for you.
In this broad summary, the loan option referred to as a reverse mortgage takes it’s definition and characteristics from its very name – in simple terms, it is the exact reverse process of a standard mortgage loan. It is a lending mechanism that permits a homeowner from the age of 62 years or older to tap into the equity of their home.