- Are you, and any other current owners of your home, age 62 or over, and live in your home as a principal residence?
Why is this important? These are the very basic qualifications to apply for a Reverse Mortgage loan. If either of these answers are “no”, you are not eligible for a Reverse Mortgage.
- Is your home a single-family residence in a 1- to 4-unit dwelling, a condominium, or part of a planned unit development (PUD)?
Why is this important? Once again, these are the very basic qualifications to apply for a Reverse Mortgage loan. If you have any question whether or not your home will qualify, let your Reverse Mortgage Specialist know at the beginning.
- Are you willing to discuss the program with a counselor from a HUD-approved counseling agency to make sure this is the right choice for you?
Why is this important? HUD requires anyone applying for a Reverse Mortgage to first meet with a counselor (either in person or via telephone) from a HUD-approved counseling agency. This takes less than an hour. This ensures that all of your questions about the program are answered completely and you are in full understanding of how the program works.
- Do you have use for the extra money?
Why is this important? Obviously there is no reason to take out a Reverse Mortgage if there is no need for the money. Most people use the proceeds of a Reverse Mortgage to pay off bills, purchase long term care/life insurance, have extra cash for everyday living expenses, home repair/remodeling, healthcare costs/medical expenses, prescription drugs, in-home care, financial/estate tax planning, lifestyle enhancements/travel and more.
- Do you wish to remain living in your home forever?
Why is this important? A reverse mortgage works best if you plan to stay in your home for a long time. The longer you stay the less expensive the loan is because the associated upfront fees. Borrowers typically pay origination fees, closing costs and, in the case of HECM loans, a mortgage insurance premium. Those fees are typically rolled into the loan amount so you don’t have to pay them up front, and they help guarantee you won’t have to repay the loan as long as you stay in your home. But if you plan to move in a few years, you’ll end up paying for protection you don’t need.
- Do you expect to move or permanently leave your home in the next few years?
Why is this important? Once again, a Reverse Mortgage works best if you plan to stay in your home for a long time. Perhaps you don’t plan on living their forever, but if you expect to move in the next few years, a Reverse Mortgage may not be your best option.
- Are you only concerned about a one-time financial expense?
Why is this important? If you need money for a one-time expense, such as a new roof, you may find other programs that are quicker and/or less expensive than a Reverse Mortgage.
Do you have questions about Reverse Mortgage The Villages, Reverse Mortgage Florida? Call Bob Gersh, your Reverse Mortgage Specialist, today!
1-800-486-8786 ext. 813