Facts About Reverse Mortgages in The Villages, Florida
Reverse Mortgage Facts
source: www.reversemortgagescompared.com
What Is A Reverse Mortgage?
Reverse Mortgages are a form of equity release, it allows a borrower to turn the equity that has been built up in a home into cash. This cash can be received through a lump sum payment, an ongoing monthly payment or a combination of both. What separates reverse mortgages from traditional mortgages is that the loan does not need to be paid back until one of the following occurs; the owners/borrowers sell the house, the house is no longer the primary residence (this occurs when the owner do not live in the house for a period of 364 consecutive days or more. Usually as a result of moving into a nursing home or retirement village), or they pass away.
Reverse Mortgage Requirements
There are a number of requirements that must be met before a borrower can be deemed eligible for a reverse mortgage, these requirements are as follows:
- 62 Years of age or older
- Own home outright or have a mortgage balance that can be paid in full with the proceeds of the loan
- Must be the principal residence of the borrower. For example, holiday homes are unable to have this type of loan applied to them
The borrowers must not have a pending or current bankruptcy. If they do then court approval is necessary before closing.
If you have questions about Reverse Mortgages in The Villages, Florida, contact our Specialists at iReverse. We are dedicated to providing you with the knowledge you need to make decisions for your future. Call today, 800-486-8786 ext 813.