YES! FHA guarantees that the borrower can never owe more than the home is worth at the time it is sold. This is a non-recourse loan! This is one of the most powerful aspects of a reverse mortgage. FHA Guarantees that neither the borrower nor the heirs will owe more than the home is worth […]
Understanding the Reverse Mortgage and How to Best Use This Unique Financial Tool
How does a reverse mortgage work, and when is it appropriate for a homeowner to get one? Here is what you need to know. What is a Reverse Mortgage? In short, a reverse mortgage is a type of home loan secured by a primary residence, where repayment is deferred to a later date – generally […]
Understanding the Principal Limit on a Reverse Mortgage
Principal limit is a unique term with the reverse mortgage and simply translates into how much you can borrow. Assuming the same data is used this number should be consistent from lender to lender. The data includes three critical numbers: age of the youngest borrower, rate, and home value. Here is a brief explanation of […]
Three Tips to Ensure That a Reverse Mortgage Makes Sense for Your Financial Situation
When you apply for a reverse mortgage, also known as a HECM home equity conversion mortgage, you are essentially borrowing money from some of the equity you have built up in your house. One great advantage of a reverse mortgage is that you are not required to make monthly payments until you no longer occupy […]
Can You Use a Reverse Mortgage to PURCHASE Your Next Home? Yes, and Here’s How
The HECM for Purchase program was established in 2008. Before it was created a homeowner had to relocate and purchase a home with a traditional mortgage, establish residency, and then refinance the home with a HECM if desired. This lengthy process would require two sets of closing costs and an extensive waiting period. Since 2008 […]
