If an FHA-insured loan was included in the bankruptcy estate, the borrower is not eligible for another FHA insured loan for three years from the date of the discharge. On a HECM used for a refinance: There is no seasoning or credit score requirements if you had a Chapter 7 bankruptcy, unless an FHA insured …
How long is the waiting period to get a reverse mortgage if I had a Chapter 13 bankruptcy?
The borrower must pay off any liens against the subject property and any federal debts. On a HECM used for a refinance: Liens must be paid off at closing with the HECM proceeds and the payoff letter from the trustee; or Provide the court order signed by the judge indicating the borrower does not need …
How long is the waiting period to get a reverse mortgage if I had a Chapter 11 bankruptcy?
The borrower must pay off any liens against the subject property and any federal debts and court ordered approval, signed by the bankruptcy judge, indicating that the borrower does not need to pay off the bankruptcy and that the borrower is further authorized to proceed with the Reverse Mortgage.
I plan on selling my home in the next year, is a reverse mortgage a good idea?
We view a reverse mortgage as a long term solution and as such, we wouldn’t recommend you get one if you plan on selling within a year. There may be instances where a reverse mortgage can be of benefit to you as a short-term solution. It would be advisable to have a conversation with one …
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Will a reverse mortgage affect my social security or medicare benefits?
It is always advised to check with a tax specialist, however, in general, a reverse mortgage does not affect Social Security and/or Medicare. There are ways that a reverse mortgage could affect asset based benefits such as Medicaid. If you are on Medicaid, any reverse mortgage proceeds that you receive must be used immediately. Funds that …
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What’s a reverse mortgage loan?
A reverse mortgage is a loan, secured by a home, where repayment is deferred until a later date, typically when the home sells. There are 2 main differences between a reverse mortgage and a traditional mortgage. With a reverse, the payment stream is reversed. Rather that you making monthly payments to the bank, you are …
Do I still own my home if I get a reverse mortgage?
Yes. The borrower still retains ownership of the home and may sell it at any time with no prepayment penalties. Many seniors believe the lender gets the home in the transaction. That is not true. It is simply secured with a lien the same way their current mortgage is secured, or the same way a …
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Does my line of credit grow?
Yes. The available Line of Credit (LOC) for a HECM reverse mortgage grows at the interest rate plus 0.5%. However, only the available LOC grows. Therefore, a client that borrows every penny from their LOC will not see an increase. Read more about the line of credit that grows. We also have a proprietary product, …
Can reverse mortgages be paid off at any time?
Yes, reverse mortgage can be paid off without penalties on HECM reverse mortgages and jumbo/proprietary reverse mortgages. As such, they can be paid off at any time. Remember that if you have a line of credit set up and would like to continue to have access to that line, you cannot pay your account down …
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Are reverse mortgages non-recourse loans?
All reverse mortgage loans that we offer are non-recourse, meaning you can never owe more than the value of your home. The non-recourse feature is a powerful benefit of reverse mortgages. It makes it so that homeowners are not responsible for debt that accrues beyond the value of the home. This feature makes it so …
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