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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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