FHA Reverse Mortgage: Making Retirement Livable
Again
By Joseph
Hendizadeh
FHA Reverse Mortgage: For many
senior homeowners their retirement years are plagued by financial
hardship. No matter what they do they are not able to make ends meet.
Keeping the home that they worked so hard for becomes a challenge that
many aren't able to meet. Fortunately, for people who are facing this
situation, there is a solution: the
FHA Reverse Mortgage.
Although many seniors have heard about
reverse mortgages, not many understand how it works. The programs remain
shrouded in mystery, but that veil is about to be lifted.
An FHA reverse mortgage is available to
seniors who have equity in their home. The proceeds from the mortgage
can be paid in one lump sum or payments can be made to the homeowner
over time. This will all be based on how much equity there is in the
home. The money can be used for whatever is needed or desired. Some
seniors find that the additional money helps them pay for medications,
daily living expenses, or to go on vacation if they'd like.
As it is with most forms of refinance, the
old mortgage is paid off and replaced by the reverse mortgage. However,
with a reverse the homeowner will not have monthly payments. With a
reverse mortgage, the lender is paid off when the homeowner passes away
or moves out of the home (i.e., to live with family, friends, or into a
retirement or aging community).
To qualify for a reverse mortgage, the
borrower must be at least sixty two years old. There are no income
requirements or restrictions to be eligible. Nor is there a need to
worry about credit checks, as they are of no concern when it comes to a
reverse mortgage.
When applying for an FHA reverse mortgage,
the borrower will be required to complete at least one counseling
session with a counselor that is HUD-approved. This is to make sure that
the borrower completely and fully understands what the financial and
legal obligations are regarding the reverse mortgage.
In that there are so many benefits that a
person can gain from taking on an FHA reverse mortgage, it is
interesting to think that some people would disapprove. The general
complaint from people is that the home may not be around for the family
of the borrower to have after he or she passes.
If the owners no longer reside in the home,
the homeowner's estate can seek to convert the reverse mortgage into a
traditional mortgage in order to keep the house. If the owner is
concerned about leaving the financial wherewithal to ensure that the
home remains in the family, they might consider increasing their life
insurance policy.
With the additional funds from the policy,
the beneficiaries may be able to payoff the outstanding mortgage loan
and keep the home. With the help of a reverse mortgage, homeowners will
be able to do things for and with their family with less stress and
fewer financial concerns. On balance, many people find that the reverse
mortgage is the way for them to go. They get the money they need and are
able to finally relax and truly enjoy their well deserved retirement
years.
Click:
FHA Reverse Mortgage to learn more.
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