Here in Sonoma County the largest demographic are folks over 55. With an “aging” population the frequency of useage for “Reverse Mortgages” is on the rise. We’ve brought in expert Jill Gromm to give us a mini seminar on the various types of Reverse Mortgages available and WHICH one might be RIGHT for you!
Reverse Mortgage for Purchase
Why Use a Reverse Mortgage for Purchase
- Empty nesters downsizing in retirement
Two-story to a single level or Home or land too much to maintain
Closer to family or friend
Closer to hospital and medical treatment
- Unable to purchase/move in the past due to credit/income qualifications
Traditional loan still has a mortgage payment whereas with a reverse mortgage there is no monthly mortgage payment.
Easier to qualify for a reverse mortgage – (Bill S. 469 – HECM Stabilization Act of 2013 – will have a financial assessment qualification for the loan but we don’t know what that is going to look like)
Qualifying for a Reverse Mortgage
- All People on title must be 62 or better
- Amount of down payment is determined by the clients age
- Property – Must meet FHA guidelines
- Right Now everyone is a preferred borrower. Credit and Income does not affect the interest rate. In the Senate there is a proposed bill (Bill S. 469 – HECM Stabilization Act of 2013 – will have a financial assessment qualification for the loan but we don’t know what that is going to look like yet) The goal is to make sure the client can make the property taxes and insurance payments. Continue reading All about “Reverse Mortgages”–When to use, HOW to use, WHY they are a good tool for those in their later years