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- BEGINNERS START HERE
WHAT IS A REVERSE MORTGAGE?
- · A Reverse Mortgage (backward
mortgage) is simply a mortgage loan that affords seniors, 62 or older
the benefit of using the equity accumulated in their home to provide
monthly income, receive a one lump sum payment or line of credit. The
money is tax free - after all it's already your money (equity).
- · The older the borrower, the greater
percentage of your home's equity is available.
REVERSE MORTGAGE CHOICES AVAILABLE:
There are basically three products. An FHA/HUD Home Equity Conversion
Mortgage which is commonly referred as a HECM.
- · The Fannie Mae Home Keeper, which is
a government sponsored product.
- · The third type is the Financial
Freedom Cash Account. This product is used to finance properties which
exceed the lending limits of the two previously mentioned products.
There is no lending limit for this product.
QUALIFICATIONS AND CRITERIA FOR THE BORROWER:
- · No income, health or credit
qualifications. Must be 62 or older.
- · No Monthly payments.
- · Home must be borrower's primary
residence.
- · Borrower retains title to and
occupancy of their home.
- · Loan is non-recourse, no debt left to
heirs and no other assets are affected.
USE OF THE PROCEEDS OF YOUR EQUITY:
- · Unrestricted.
- · Examples:
The money can be used for medical care, purchase long term health care
insurance, repay debt, home repair, pay property taxes, daily living
expenses, grandchildren's education, purchase annuities or life
insurance, travel, give as gifts or buy that second home, boat or car
you have always wanted.
ELIGIBLE PROPERTIES:
- · Single family residences, 1-4 family
homes, so long as one of the units is the borrower's primary residence,
condos and co-ops.
FEES TO OBTAIN A REVERSE MORTGAGE:
- · Recording fees and closing costs normally
associated with a regular mortgage.
- · An appraisal and credit report fee.
- · No application fee, no processing
fee, no "Points", no junk fees.
COUNSELING REQUIRED?
- · Yes.
To safeguard the borrower and the lender a third party non-biased, HUD
approved individual is required to counsel the borrower before a
commitment can be issued.
HOW DO I GET MORE
INFORMATION?
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