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Who Qualifies for a Reverse Mortgage?
The terrible shape the economy has been in recent times is what led to most governments taking steps to assist its people. In the real estate market, certain legislation was amended to make it possible for people to access better financial terms to home buyers. This was to help boost the failing real estate industry. These amendments gave rise to the concept of reverse mortgage for buying a house. This is how so many individuals have managed to access a piece of real estate in this economy.
Reverse mortgage is an insured legislation by the government put in place to enable seniors and retirees to buy houses. It enables them to do away with the monthly payments that is expected of most mortgage offerings. Senior citizens cannot manage to keep up with the monthly payments since they have no steady monthly income to afford it. It is also beneficial to them since it is backed by the government, thus ensuring no foreclosures on the properties.
For you to access reverse mortgage, you need to be over 62 years old, and have met the specifications of the Housing and Urban Development for access that mortgage loan. You also need to show that you shall cover the remaining expenses needed for the home at closing, and have been approved by the HUD. You are also expected to be in the house within the first two months after the deal is done. You shall access all the benefits and incentives that come with the loan only if you remain a resident in the property. Those benefits are taken back the minute you move to another residence.
You also need to make sure as you try and access a reverse mortgage that you shall use the new residence as your primary one. A reverse mortgage ceases to exist the minute you convert that residence into a vacation home or rent it out. This type of mortgage helps you discover more benefits and less restrictions than other types out there.
There are more benefits that come with reverse mortgages. You shall receive the funds from this loan, depending on what payment method you chose, be it cash advance, whole payment, or lump sum. These funds are tax-free, which is even more advantageous for retirees. They shall thus have a substantial avenue to improve their lives. This is something worthwhile for individuals who are at an age when they need it the most. They shall contribute positively towards the economy, while securing better residence standards for their twilight years.
You can read more here about reverse mortgages. The sites and blogs are there to help you decide on the matter.
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