Why Reverse Mortgage
Reverse mortgage involves owing money to a lender that one will pay back by using one’s house as equity. In bank mortgages that are used to acquire the houses one is required to pay up to the bank and with interest, failure to which the lender can auction the house and property in order to meet the full amount of the loan.
Borrowing money to buy a house is something that is common to the society and practiced by many, even though the disadvantages to the borrower are many.
Reverse mortgage allows one to use part of one’s home and convert it into financial benefits, it is a home equity conversion mortgage program.
Reverse mortgage is popular among the senior citizens and it helps them in meeting their bills, this means that one receives money for enrolling in this program.
Choose Reverse Mortgage
Unlike most loan or mortgage cases the reverse mortgage does not entail a time limit.
This means that one can repay the loan over a long period, the only thing that needs to be followed is that the applicant continues to live in the same premises during the duration of the loan.
What are the requirements that one needs to get a reverse mortgage?
The qualifications that one needs to engage in a reverse mortgage plan are; one needs to be a home owner aged sixty two and above, one needs to own the house directly and one needs to have low mortgages that do not exceed the financial gains made by a reverse mortgage.
In addition to these requirements one needs to be of sane mind. Only residents of the area where this service is being offered, currently the reverse mortgage is offered to U.S. citizens courtesy of the federal housing administration.
Having met the requirements one needs to know if one will be eligible for the program. One may own a home but the method one used to acquire it may induce doubts in the application of the reverse home mortgage program. All home owners in the united states that have met the qualifications are eligible for reverse mortgage. The program does not require that one had to have acquired the house through the federal housing administration home loans. House owners that acquired their houses by building or buying by means of loans from other money lenders are qualified to enroll in the reverse mortgage program.
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