Website design By BotEap.comA reverse loan, also known as a lifetime mortgage, is available to senior US homeowners who wish to receive a sum of money from the equity in their home. Instead of making a monthly mortgage payment to the lender, the borrower can get a certain amount of money, either as a single lump sum or in multiple installments. This is a way to earn additional income from your property. However, the downside is that your link increases as the owner continues to receive payments. What’s more, the interest incurred from default will eventually lead to future foreclosure. The agreement is that the payment of said mortgage will not take place until the owner leaves his house, dies or has sold the house. In the United States, a reverse mortgage must be the only loan made on the property, one cannot obtain an additional loan even if the equity in the home has increased. If you are a US homeowner looking for a federal loan modification program, which will not only allow you to stop making monthly mortgage payments, but will also supplement your income, apply for the Home Equity Conversion Mortgage ( HECM). Website design By BotEap.comThe Home Equity Conversion Mortgage, which is a program of Housing and Urban Development, is the only reverse mortgage for seniors insured by the US federal government. This federal loan modification program is available only to owners who can meet these requirements:
- Your mortgage is with an FHA-approved lender.
- Owner is 62 years of age or older on the date of application
- The property you are applying for a reverse mortgage on is your principal residence.
- Able to participate in any consumer information seminar conducted by any HECM counselor in the area.
- The home must be a one to four unit residence and must meet FHA requirements.