Today’s seniors are being hit just as hard, if not harder, by the ongoing economic downturn and rising costs. Homeowners who have reached the age of 62 or older in many cases have paid off the mortgages on their homes and thus have built up a large amount of equity. Since 1988, the Department of Housing and Urban Development (HUD) has made it possible for these homeowners to tap that equity for loans known as reverse mortgages. Many people who aren’t familiar with this type of loan may worry that a family member who has a reverse mortgage will lose his house, but that isn’t the case.
A reverse mortgage differs from a more conventional home equity loan or second mortgage in one very important way. A reverse mortgage must be repaid, but it doesn’t come due until your family member no longer uses the home as his primary residence or when the conditions of the reverse mortgage are no longer being met. Most homeowners who take out a reverse mortgage choose to defer payment until they no longer live in the home. When the home is sold, the reverse mortgage is added to the other financial obligations the proceeds of the sale must pay off. If your family member is struggling to live on a fixed income with rising medical or other bills, Reverse Mortgages in Virginia Beach could be an viable option for him.
To qualify for a reverse mortgage, all homeowners listed on the property’s deed must be at least 62 years old. The homeowners must live in the residence at least six months of every year, making vacation and investment properties ineligible for a reverse mortgage. The residence itself must be a single-family home, a duplex or fourplex, or an approved condominium or manufactured home. Homeowners interested in obtaining a reverse mortgage must undergo counseling to ensure that they understand the advantages and drawbacks of taking out this type of loan.
Reverse Mortgage Pro offers Reverse Mortgages in Virginia Beach for interested eligible homeowners. The company has been in business for over 20 years, since the reverse mortgage industry was in its infancy, and is a member of the National Reverse Mortgage Lenders Association (NRMLA). As a member, the company adheres to the NRMLA’s very strict code of ethics. If your family member needs to find a source of extra money, take a look at reverse mortgages.