• Questions

    HECM Counseling Costs

    What will reverse mortgage counseling cost in Corvallis Oregon? Housing counselors are permitted to charge for reverse mortgage counseling, however the agency must inform you about the expense before charging you it, and the fee really should be affordable. Charges are typically around $125. Counseling agencies are instructed to waive the counseling fee when your income is under two times the poverty level. Tip: Make sure your reverse mortgage counselor is approved by the U.S. Department of Urban Development (HUD). You can find HUD-approved housing counselor by visiting HUD’s counselor research webpage or calling HUD’s housing counselor referral line (1-800-569-4287). Tip: If you’re behind on your real estate taxes and…

  • Questions

    Who Can Apply For A Reverse Mortgage?

    Can anybody apply for a reverse home loan? Answer: No. Not everyone may apply for a reverse mortgage. There are specific conditions you must satisfy in order to be qualified to apply for a reverse mortgage. The most common type of a reverse mortgage is called a Home Equity Conversion Mortgage (HECM). The Federal Housing Administration (FHA), a part of the Department of Housing and Urban Development (HUD), insures HECMs. Note: This webpage contains information about HECMs, which are the most common type of reverse mortgage loans used in Corvallis Oregon. To qualify for a HECM: You must be a minimum of 62 years old. Your home has to be…

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  • Questions

    Purchase A House With A Reverse Mortgage

    Could I use a reverse mortgage loan to buy a property? Answer: Yes. The Department of Housing and Urban Development (HUD) has a “HECM for Purchase” program that enables baby boomers, age 62 or older, to buy a house using a reverse mortgage. You will need a much larger down payment when compared with a regular mortgage, but like all reverse mortgages, you won’t have to make monthly mortgage payments on the loan as long as you satisfy all of the requirements of the loan. Tip: To learn more about the reverse mortgage program, visit HUD’s website, or ask your housing counselor. You can locate a housing counselor using HUD’s…

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  • Questions

    Loan is Larger Than Home Value?

    How are you affected if my reverse mortgage loan balance grows greater than the value of my property? Answer: That depends on the kind of reverse mortgage you may have. The majority of reverse home loans today are insured by the Federal Housing Administration (FHA), as part of its Home Equity Conversion Mortgage (HECM) program. An FHA-insured HECM loan is a non-recourse loan. This means that if your house is sold to repay the loan, neither you nor your family members are going to be required to pay greater than the sales price of the home. The insurance will cover any deficiency, as long as your house sells for at…

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  • Questions

    Reverse Mortgage Definition

    What’s a reverse mortgage? Answer: A reverse mortgage is a type of loan that enables older homeowners to borrow from the equity in their property. It is labeled a “reverse” mortgage because instead of making payments to the lender, you get money from the loan provider. The funds you receive and the interest charged on the loan add to the balance of the loan monthly. Over time, the loan balance increases. Since home equity is the value of your property minus any loans, you will have less equity in your property as the loan balance increases, that may become a problem should you ever want or need to move. The…

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  • Questions

    When Do You Payback A Reverse Mortgage?

    Answer: Reverse home mortgages usually are due and payable after you die, but might will need to be repaid earlier in the event you do not make use of the house for your principal home, or neglect to pay taxes or insurance protection, or take care of needed repairs. Nearly all reverse mortgages offeredare Home Equity Conversion Mortgages (HECMs). The Federal Housing Administration (FHA), a part of the Department of Housing and Urban Development (HUD), insures HECMs. A HECM mortgage loan needs to be repaid as soon as the last living borrower or eligible non-borrowing spouse dies. The mortgage also results in being payable when the last surviving borrower sells…

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  • Questions

    Reverse Mortgage Alternatives

    If I am contemplating getting a reverse mortgage, what other possible choices should I look at or do I have available? Answer: This will depend on your circumstances. Depending on your finances and the needs you have, other financial loans might make more sense than a reverse mortgage. Examples include second mortgage loans or Home Equity Line of Credit (HELOC), which often have lower fees – but you’ll have to be able to make loan payments to a bank or other loan company on a regular basis. state, local government agencies, and nonprofit organizations in Corvallis offer single-purpose reverse mortgage loans to help pay for house maintenance, improvements, or property…

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  • Questions

    Will My Spouse Still Be Able To Live in the Home?

    Answer: Providing you still live in the home, a reverse mortgage isn’t going to change who is able to live with you. Nearly all reverse mortgages available today are Home Equity Conversion Mortgages (HECMs). The Federal Housing Administration (FHA), a part of the Department of Housing and Urban Development (HUD), insures HECMs. Providing you still reside in the property, using a HECM won’t change who can reside with you. However, if you die or vacate the property, the people who live with you might not be able to carry on living in the house without you. When you’re co-borrowing your HECM with a spouse (or anyone else), your co-borrower can…

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  • Questions

    Why Are There Reverse Mortgages?

    The U.S. senior citizen population is growing. Between 1990 and 2000, the number of individuals at least 65 years of age increased from 31.2 million to nearly 35 million. Many more are reaching the minimum social security retirement age; by 2010, more than 50 million people in this country will be at least 62 years old.1 Life expectancies are lengthening, creating the need for retirement income to last longer than in previous generations. However, according to the U.S. Government Accountability Office, “Efforts to increase personal savings outside pension arrangements seem to have had only marginal success.”2 As a result, older people who need additional funds to cover general living expenses…

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  • Questions

    Can’t Pay Property Taxes or Insurance?

    What should I do if I have a reverse mortgage and I can’t pay my property taxes or insurance? If you stop paying taxes and insurance, your reverse mortgage lender could file a foreclosure to take your home. It’s important to keep current with these payments if you can afford to do so. Learn more about what to do if you’re already behind on your tax or insurance payments. If you are struggling to afford your taxes and insurance, there might be local programs or other options that can help you keep your home. A reverse mortgage foreclosure prevention counselor can help you make the best choice for your situation.…

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