Seniors Living in The High Desert, Age 62 and Older, May Qualify For a Reverse Mortgage.
Every 76 seconds someone in the US turns age 50…
Seniors aged 62 and older that live in The High Desert, who qualify for the Reverse Mortgage, may either buy or refinance an existing home. Participants may choose between receiving non-taxable monthly income, a lump sum payment or making no payments at all. Insurance, real property taxes and association fees must be paid and users must certify each year that they are the principal residents of the home.
The home may be sold or refinanced at any time. Heirs will be given the option to refinance or sell the home. If the home is sold, the Reverse Mortgage balance will be paid off first and the remaining balance will be distributed however the late owners have designated.
Here are some more important things that anyone considering a Reverse Mortgage should know:
- FHA Reverse Mortgage loan limit is $625,500
- Eligible property types include single family residences, condos and town homes, one to four unit properties and newly constructed homes that can provide proof of completion and a Certificate of Occupancy.
- Participants are required to complete a HUD Counseling Session
- Participants must show a fully executed Sales/Purchase Contract
- Participants must provide documentation of cash to close (source of funds and current balance)
- FHA prohibits Discount Points, Interest Rate Buy Downs, Closing Cost assistance and Builder incentives
- Subordinate, bridge and personal loans are not allowed. Either are cash advances from credit cards or Seller Financing.
- Insurance that is required: twelve months of Hazard insurance premiums and twelve months of Flood insurance is required, both payable at closing.
For additional information about Reverse Mortgages see the Reverse Mortgage website