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Reverse mortgage info Print E-mail
Reverse mortgage can be simply defined as a loan which is extended to senior members of the society against their property holdings. Following are some reverse mortgage info that one should know. First bit of reverse mortgage info is the eligibility criteria. To qualify for reverse mortgage, you need to be above 62 years of age in the United States. However, there are no minimum income criteria, nor are there any credit standing requirements. However, in case of a bankruptcy case impending against the applicant, it may slow down the process of sanctioning of the reverse mortgage. There is one condition that needs to be taken care of. It is that any outstanding mortgage for the applicant has to be paid out of the loan amount being given from reverse mortgage. Another bit of reverse mortgage info is that there are certain restrictions for certain type of dwellings. Some type of dwellings do not qualify for reverse mortgage, while dwellings like mobile homes come with special requirements like permanent tie down before they are sanctioned for reverse mortgage. Now the most important bit of reverse mortgage info. What determines the amount that will be made available to the applicant? It depends on a number of factors. For one, it depends on the value of the property as appraised by an independent appraiser and whether there are any existing claims against the property. Second would be the interest rates which are existing at that point of time when the reverse mortgage is being sanctioned. Another bit of info is that the older the applicant is, the more an amount he/she is liable to get. The mode of payment of money whether its lump sum or monthly installment also determines how much money will get sanctioned. There are basically three types of payments. One is a lump sum where in the entire amount is paid at one go to the applicant. The second type is the monthly installment where in the applicant receives a fixed monthly payment for the entire period of his/her life. The third mode would be the line of credit payment. Another important bit of reverse mortgage info is that the loan advances against reverse mortgage is considered as liquid assets and in case the amount is kept in the personal account of the homeowner beyond the calendar month in which it was received. In that case, if the homeowner is under any Medicaid or similar program and the income exceeds the maximum limit set by such programs after taking into consideration the loan advances, then the homeowner will lose the benefits that he is eligible for.


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