Requirements

The Expanding American Homeownership Act and Reverse Mortgage

In November 2007, US Senator Jim Talent introduced the Expanding American Homeownership Act.
Since 1934, the FHA has helped more than 34 million families purchase homes with affordable mortgages and fair payment terms. Still, many experts feel that the agency needs to adapt to today’s market place. The ultimate intent of the Expanding American Homeownership Act [...]

Do You Qualify for a Reverse Mortgage?

Reverse mortgage lending has gained a lot of popularity with senior homeowners lately because the money seniors receive helps them live in your homes longer and more comfortably. However, all prospective borrowers must meet with an independent counselor before they are able to apply for a reverse mortgage program.
Financial counseling sessions are designed to [...]

Can I Use a Reverse Home Mortgage to Avoid Foreclosure?

The recent popularity of reverse mortgage lending is causing a stir among many retired Americans who own their home but still struggle to pay their real estate taxes and other bills.
Real estate taxes are a particular source of anxiety for many, because a home can be foreclosed due to delinquent tax payments - even [...]

When the Loan Ends

Reverse mortgages are advantageous because all loan payments are deferred as long as the property remains the borrower’s primary residence. There is no obligation to repay the loan until the owner dies, the home is sold, or the owner otherwise vacates the property (for example, to move into an assisted-living facility).
So, what happens when [...]

Why Do I Have to Complete Reverse Mortgage Counseling?

Federal regulations mandate that all prospective borrowers be required to meet with an independent, third-party reverse mortgage counseling service before they are able to apply for a reverse mortgage.
The counseling sessions are mandatory because many seniors aren’t aware that they have numerous rights and protections in lending and borrowing. Today, many consumer safeguards are [...]

Top Reverse Mortgage Questions, Part 2

1. When do I pay back my reverse mortgage loan?
All loan payments are deferred as long as the property remains the borrower’s primary residence. There is no obligation to repay the loan until the owner dies, the home is sold, or the owner otherwise vacates the property for 12 consecutive months (for example, to move into [...]

Top Reverse Mortgage Questions, Part 1

1. What is a reverse mortgage?
A reverse mortgage is a special type of loan used to “unlock” the equity in older homeowners’ (ages 62+) homes. Reverse mortgages enable seniors to cash in on the equity in their homes without giving up ownership of the property. The tax-free income is a loan, and payments are deferred until [...]

Reverse Mortgages vs. Home Equity Lines of Credit

There are some similarities between reverse equity mortgages and home equity lines of credit. Both programs use equity in the property to generate cash flow for the homeowner, and both require the homeowner to pay all property taxes and insurance and utility payments.
Another similarity lies in payment options. Reverse mortgages loans offer several disbursement [...]

Basic Features of a Reverse Mortgage

A reverse equity mortgage can be an attractive option for some seniors, but this type of loan does come with a specific set of requirements and regulations. Any consumer considering using a reverse mortgage to unlock the equity in his or her home should carefully examine the terms of the mortgage before committing.
• Reverse mortgage [...]