Are you or someone you know a Southern Oregon senior citizen looking to find the means to supplement retirement benefits? The economy has wreaked havoc on many families, including those relying on fixed income benefits like social security, pension and retirement benefits. Dropping interest rates and poor stock/mutual fund/bond performance has gnawed away at the supplemental income many people rely on to bridge the gap between their everyday living expenses and their retirement benefits. Or, maybe you or your parents/grandparents are handling their everyday living expenses okay, but the time has come to make necessary repairs to the home or cover some unanticipated major expense.
The solution for many people to bridge this gap between income and everyday expenses is a government insured mortgage program, the Home Equity Conversion Mortgage - aka "H.E.C.M." or "Reverse Mortgage". This loan has been around since 1961, but had a major overall in 1989 when HUD began to regulate this loan. Today, at the rate Baby Boomers are coming of age, this is one of the fastest growing segments of the mortgage market.
Some general program details:
- You must be 62+ years old
- You never have to make monthly payments on the amount you borrow
- Credit history and income do not matter. The amount of money available to you is based on your home's appraised value and/or the FHA loan limit (currently $625,500 nationwide) and your age.
- Money may be disbursed to the homeowner in a lump sum, through monthly payments or accessed through a home equity line of credit.
- This is a non-recourse loan, meaning the homeowner(s) or heirs can never owe more than the home is worth
- You must reside in the home more than 50% of the year, which will be checked annually
- You must pay your property taxes and homeowner's insurance, and maintain upkeep on the home.
- When the day comes you no longer live in the home, you or your heirs have time to make arrangements to refinance or sell the home and payoff the Reverse Mortgage
With a Reverse Mortgage, your home is either owned outright with the mortgage paid off long ago, or the mortgage has been in place a very long time leaving a great deal of equity in the home. There are protections built in to this program, such as the requirement the homeowner receive counseling from a HUD approved independent agency who fully explains the details the homeowner must know and mortgage insurance is in place to make sure you never owe more than the home is worth.
Sound like the solution you and your family have been looking for? Looking to use a Reverse Mortgage to Purchase a Home? Call or e-mail for more details.
See you at the closing table!
Karen Cooper - OR/CA Mortgage Consultant - www.Quality4Loans.com