Borrowers who intend to downsize or move to a different neighborhood will likely get the most out of this type of loan. Lastly, the HECM for Purchase is a special-purpose reverse mortgage loan that is designed to help homeowners purchase a new home using the loan proceeds. On the other hand, the Jumbo Reverse Mortgage is a reverse mortgage loan that allows homeowners with higher value homes to convert more of their home equity into cash by bypassing the lending limit imposed by the government on HECMs. Borrowers need only repay the loan when they die, sell or move out of their home, or fail to comply with the ongoing requirements of the loan. Like all other reverse mortgage programs, it allows eligible borrowers to convert their home equity into cash, without having to worry about regular monthly payments. If you are a financial planner, attorney, or other professional who works with elderly clients, you may also receive one complimentary copy of the booklet via mail delivery by calling 1-86 (toll free).As a reverse mortgage lender in Sacramento, South River Mortgage provides three loan options for eligible homeowners: (1) HECM, (2) Jumbo Reverse Mortgage and (3) HECM for Purchase.Īs already mentioned, the HECM is a reverse mortgage loan regulated and insured by the government. To download - Just the FAQs: Answers to Common Questions About Reverse Mortgages – please click here to be directed to our downloadable resource page. NRMLA ( National Reverse Mortgage Lenders Association ) provides a consumer guide to answer common questions about reverse mortgages. Here is a link to our Reverse Mortgage Calculator To find out if you qualify for a reverse mortgage, give us a call and we would be happy to meet talk with your about your options. There are also no limits on the value of homes qualifying for a HUD reverse mortgage. There are no asset or income limitations on borrowers receiving HUD's reverse mortgages. Timely payment of real estate taxes, hazard and flood insurance premiums will be verified.Income, assets, monthly living expenses, and credit history will be verified.Manufactured home that meets FHA requirements. Single family home or 2-4 unit home with one unit occupied by the borrower.Participate in a consumer information session given by a HUD- approved HECM counselor.Have financial resources to continue to make timely payment of ongoing property charges such as property taxes, insurance and Homeowner Association fees, etc.Occupy the property as your principal residence.Own the property outright or paid-down a considerable amount.The remaining value of the home goes to the homeowner or to his or her survivors. Lenders recover their principal, plus interest, when the home is sold. Unlike ordinary home equity loans, a HUD reverse mortgage does not require repayment as long as the borrower lives in the home. The program was also designed to enable senior homeowners to relocate to other geographical areas to be closer to family members or downsize to homes that meet their physical needs, i.e., handrails, one level properties, ramps, wider doorways, etc. The program was designed to allow seniors to purchase a new principal residence and obtain a reverse mortgage within a single transaction. Homeowners can receive payments in a lump sum, on a monthly basis (for a fixed term or for as long as they live in the home), or on an occasional basis as a line of credit. Reverse mortgages are popular among h omeowners 62 and older who have either paid off their mortgage or have only a small mortgage balances remaining and want to supplement their income through equity in their home. Federal Government and is only available through an FHA approved lender. Home Equity Conversion Mortgage or HECM is the only reverse mortgage insured by the U.S.
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