If you are over the age of 62, you may want to participate in FHA’s Home Equity Conversion Mortgage(HECM), which is known as the reverse mortgage project.
If you want to qualify as a counter base, you must be a homeowner who has paid off the mortgage or paid a considerable amount of money and currently lives at home.
This step allows you to choose how to withdraw funds. Fixed monthly amount or credit or a combination of both.
How does the FHA anti base program work?
Before deciding whether the counter plot base is suitable for you, you should consider a lot. In order to assist in this process, the Federal Housing Administration requires that you meet with a backup mortgage adviser of your choice.
The consultant will discuss the financial impact, qualification requirements and alternative reverse bases. They will also discuss how to repay the loan and what will happen when the counter plot base expires.
After the consultation course, you should be able to make an informed decision about whether the reverse mortgage meets specific requirements. You can search for HECM or counter base consultant online, or you can search through the toll free number(800) 569-4287.
You must also meet some borrower and real estate qualification requirements. You can use the following information or the reverse mortgage calculator that is easy to find online to ensure your eligibility.
If the qualification requirements are met, the application for reverse mortgage can be completed through all borrowers approved by FHA. Almost all institutions providing mortgage loans will be approved by FHA. You can search for FHA approved lenders online or request a list from the HECM Advisor. After selecting the lender, all requirements of the reverse mortgage loan plan, loan approval procedures and repayment terms will be discussed. If they don’t, you choose the wrong borrower. Please do more research and choose other mosquito paper sources!
Borrower’s Requirements
• Minimum age 62
• Own free and clear property or equivalent shares
• Live on the real estate, which must be your main residence.
• Do not default on federal debt.
• Attend HUD approved consumer information meetings provided by HECM or counter base consultants
Property requirements
• Single residence or
• Two to four units must be integrated and one unit must be
• HUD approved apartment communities or
• Manufactured or mobile homes meet all FHA requirements
Financial requirements
• Income, assets, monthly living expenses, credit records, real estate taxes and insurance premium payments will be recognized.
There are 5 payment plans to choose from.
• Lease term – if a borrower lives and continues to use the property as a primary residence, the same amount will be paid each month.
• On a regular basis – pay the corresponding amount monthly.
• Credit lines – Unscheduled or instalments are paid before credit runs out, depending on the period and amount selected.
• Modification time – as long as there is a borrower living and continues to use the real estate as the main residence, the combination of credit line and monthly payment amount.
• Modification time – credit limit and monthly payment combination of selected fixed months.
You can change the payment plan at any time$ twenty
What is your mortgage amount based on?
Age of the youngest borrower
Current interest rate
The assessed value or FHA contraband base limit of $625500 or the selling price is subject to the consumer.
Generally speaking, the more valuable your house is, the older you will be. The lower the interest rate, the more you can borrow. If there are multiple borrowers, use the age of the youngest borrower to determine the amount you can borrow.
For an estimate of the cash proceeds of the contrarian base, please visit the HECM website and select the online calculator.
Reverse mortgage cost
You can pay most of the costs of the counter base through financing, which means you can pay with the proceeds of the loan instead of cash in your pocket. On the other hand, financing costs can reduce the amount of net loans you can use.
Reverse mortgages can incur a number of fees and expenses, including mortgage insurance premiums(initial and annual), third-party fees, start-up fees, interest and service fees. The lender will discuss these fees with you before the loan ends.
You will receive the initial mortgage insurance premium at settlement. The premium for standard insurance plans is 2%, and for savings insurance plans is 1%. These insurance plans include the assessed value of your home The FHA HECM collateral is US $625500 or at the lower of the sale price. During the loan period, an annual mortgage premium of 1.25% of the collateral balance will also be paid.
Guarantee premium
One of the expenses of FHA’s reverse mortgage base is the mortgage insurance premium. It pays the guarantee insurance, mortgages the reverse mortgage to the borrower, and guarantees that you can obtain the expected advance payment of the loan. The guarantee insurance premium can be used as part of the loan, but it can reduce the amount of net cash obtained.
Third party costs
The settlement fees incurred by the third party include the assessment fee, property right retrieval fee, insurance premium, necessary investigation fee, inspection fee, recording fee, mortgage tax and credit inspection fee. In some cases, additional costs may be incurred.
Origination fee
Another fee you will pay is the origination fee. This will compensate the borrower for handling your contraband base. If the home value is less than $125000, the lender can obtain a reverse mortgage of up to $2500. If the home value exceeds $125000, the lender will receive 2% of the first $200000 of the home value and 1% of the amount in excess of $200000. The starting fee for the anti base theory is capped at $6000. This fee is usually negotiated with lenders.
interest rate
You can choose fixed rate or adjusted rate loans. If the interest rate can be adjusted, you can choose to adjust it monthly or annually.
During the loan term, the borrower shall not move the reverse mortgage loan adjusted every year by more than 2 percentage points, and the total movement shall not exceed 5 percentage points. FHA does not require to adjust the upper limit of interest rate of the contrarian base every month.
service charge
The Borrower or its agent provides services throughout the life cycle of the base of rebellion. Service loans include sending bills to you, paying loan proceeds, and confirming whether you meet the loan requirements, such as paying real estate taxes and risk insurance premiums. The loan has an annual adjusted interest rate, and the borrower can obtain a service fee of no more than $30.00 per month. If the interest rate is adjusted monthly, the borrower can obtain a service fee of $35.00. When lending, the borrower will retain the service fee and deduct it from your available funds. Your loan is valid every month, and the monthly service fee will be added to your loan balance.
FHA rules may change. This is the guideline formulated on February 5, 2012. Before making a purchase decision, please confirm with the relevant agent or agency and keep it up to date.
