The best-laid plan can change at a moment’s notice and when it does, it is imaginable to find yourself in an unpleasant situation. As a young man or woman, it is possible to get a second job or put in a few extra hours at your primary place of employment. Those options may not be as available when you get older. Many homeowners who find themselves in such a situation and with no financial resources other than social security will consider the equity in their home to fulfill those monetary requirements. The decision to consider reverse mortgage quotes should be carefully evaluated before you sign on the dotted line.
Is It For Me
It is important to understand that if a homeowner is considering a reverse mortgage, it is probably because there is some financial stress in their lives. This does not necessarily mean that they should run out and get a few reverse mortgage quotes, but it does mean that they have the option. If you are trying to keep a roof over your head and secure that much-needed cash, then this may be exactly what you are looking for. It is important to note that more than one kind of reverse mortgage exists, so do your homework.
What are the basics?
- Can buy 1-to-4-unit properties
- The main residence only
- No additional liens are allowed after HECM purchase (Lender in 1st position, HUD in silent 2nd)
- Must invest at closing from an acceptable source. See below.
- 60 days after closing, must move in.
- When FHA insures (‘endorses’) a Home Equity Conversion Mortgage purchase loan, newly built properties must have an occupancy certificate.
How Does It Compare To A Loan
By comparison, a reverse mortgage is considered a loan, with one major difference, you will no longer be able to own the asset when the dust settles. As you look into some of the more inviting reverse mortgage quotes you should remember that there are both good and bad characteristics of this kind of loan. Borrowers who are over the age of 62 will be able to benefit from this loan, and they won’t have to pay it back during their lifetime.
Cash When You Need It
There are differing opinions as far as whether a reverse mortgage is a good idea for the borrower. The answers to those concerns are simple enough.
- Do you need cash immediately?
- Will you need to remain in the home?
- Do you have any other resources for cash?
- Is there enough equity in the home to make it worthwhile?
More often than not, the people who ended up looking for good reverse mortgage quotes already know that this is the smartest option for them. If you own the property, and you need the cash, this is clearly a great option.