Reverse Mortgage FAQ: Answers to Consumer’s Most Important Questions
By Abby Reynolds
By now, most adult consumers have at least heard of a reverse mortgage. Many also know that these loans are a way for retired adults to withdraw a portion of the equity in their homes. Still, the specifics of these loans often leave consumers with many important questions. To gain a better understanding of reverse mortgages, consumers can consult the following reverse mortgage FAQ.
Reverse Mortgage FAQ: Is There More Than One Type of Reverse Mortgage?
There are three types of reverse mortgage loans: single-purpose, proprietary, and federally-insured. Single purpose reverse mortgages are typically obtained through a nonprofit or government agency and must be used for a specific purpose. Proprietary reverse mortgages are those obtained through private financial institutions. These are not insured by the federal government and are therefore not subject to all of the same regulations.
Federally-insured reverse mortgage loans, or Home Equity Conversion Mortgages (HECMs), are those insured by the U.S. Department of Housing and Urban Development (HUD). According to statistics released by HUD in May 2010, over 90% of all reverse mortgage loans are HECMs.
Reverse Mortgage FAQ: Who Qualifies for a Reverse Mortgage?
To qualify for reverse mortgages, consumers must be at least 62 years old, own their home, and have enough equity that any remaining mortgage balance can be paid off with the proceeds of the loan. For a consumer’s home to qualify, the property must be a single family home, a two to four unit property, an FHA-approved condominium, or an approved manufactured home. It must also be used as the primary residence.
At iReverse Home Loans, we have access to a full range of mortgage sources and all of our lending specialists are dedicated to finding the right loan-with the best rates, terms and costs-to meet your unique needs. Call us today about a reverse mortgage in The Villages, Florida. 800-486-8786 ext 813.