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Monthly Archives: January 2010

HECM Reverse Mortgages Offer Seniors Many Benefits

The HUD reverse mortgages have been on the market for a long time, so they are trusted and proven products. If you are seriously thinking these kind of a loan, you have to make a list of things you need and meet an experienced federal counselor.

1. The Qualification for HUD Reverse Mortgages Is Flexible.

The main target of the HUD reverse mortgages is to help seniors to get more disposable money. That means that the qualification is done easy, so that the maximum amount of seniors could get these loans, if needed. A senior qualifies, if he is age 62 or over, own a home, where he has equity left. Actually one of maximum amount of three people has to fulfil these requirements.

A lender is not interested about the incomes nor credit information, because the HUD reverse mortgages are always taken against the value of the home. And because the borrower will not pay anything back monthly, only when the loan will be closed and the home sold.

2. Almost All Home Types Will Be Accepted.

When you think, that the HUD reverse mortgages have the homes as guarantees, you get an idea about which kind of homes fulfil this requirement. A single family homes and some of the manufactured and HUD approved homes are accepted. Also 1 – 4 units homes, where at least one unit is for the borrower.

3. A Borrower Can Never Owe More Than The Value Of The Home.

This is one of the great principles. A borrower really cannot owe more than the value of the home. So if it happens in some special cases, that the sales price of the home will not cover the loan expenses and the capital, then the missing part will be covered from the compulsory mortgage insurance. This means, that a borrower will never lose other assets.

4. How Much A Borrower Can Get?

The idea is that the older the borrower is, the higher is the appraised value of the home and the lower is the interest rate, the more he can get. So these three factors will determine the maximum sum a borrower can loan from the lender. Everything depends on other factors than the income or credit information.

5. The Lender Will Pay Along The Hopes From The Borrower.

Sounds funny, but the lender is the one, who will pay to the borrower. When we remember that the idea of the HUD reverse mortgages is to give extra disposable money to the senior, this is natural. Actually the borrower decides how much and when the lender will pay. The alternatives are as a lump sum, as a monthly payments, as a credit line or as a combination of all these.

The loan capital and all the expenses will be paid back, when the last borrower will pass away or move permanently away and the home will be sold. So as you see, the reverse loan is really reverse. When the usual mortgage loan will be paid piece by piece during a long period of time, the reverse loan uses these payments piece by piece during a long period of time.

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Posted by on January 26, 2010 in Uncategorized

 

Burning Down the House: What REALLY Caused the Crisis??

Here we go again… my industry is under attack again! With a convenient finger-pointing towards the “BIG BANKS” as demons that created it all, our president seems to be the master of misdirection… it’s time to re-view the acclaimed video report that was produced just before the 2008 election… it’s time to push the curtains aside and understand the real causes of this explosion.

 
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Posted by on January 23, 2010 in Uncategorized