Posts Tagged ‘smaller institutions’

FHA Reverse Mortgage

Tuesday, January 13th, 2009

Are you considering an FHA reverse mortgage loan on your home? While there are many advantages to these types of loans, there are also some things you must know before moving forward with this loan.

FHA stands for the Federal Housing Administration, which is a branch within the United States Department of Housing and Urban Development (HUD). In order to qualify for this mortgage program, their are certain requirements the FHA has set. One of those is that the homeowner must be at least 62 years of age, or older. The FHA also provides insurance which makes the loan program less expensive for the borrowers then similar reverse mortgage programs offered by private lenders and smaller institutions.

The only other requirement the FHA question of you, other than being 62 years of age or older, is that you have equity in your home and small debt or mortgage against it. There is no other restrictions, required credit ratings, level of income or any other assets needed. If you are approved for an FHA reverse mortgage loan you can receive your loan in one of three options. You can take it all in one lump payment, in monthly installments for a fixed term, or indefinite term as a line of credit against the loan.

An FHA loan is paid off either when the homeowner passes away, moves out of the home, or sells the property. Then, HUD collects the proceeds from the sales. If those proceeds exceed the loan, then the difference is either awarded to the homeowner, if he is alive, or to the homeowner’s heirs. If the proceeds do not cover the amount of the loan, then HUD covers the difference.

The main benefit of these loans are that the homeowner is not required to make monthly payments against the loan. That is why they call it a reverse mortgage — because instead of you having to make payments each month, the leading institution is making payments to you — whether monthly, in one lump sum, or when you use it as a line of credit.

The way the amount of the loan is calculated has to do with the value of your home, the interest rates, the location of your home, as well as your age. These are some of major aspects of an FHA reverse mortgage to keep in mind.

Tags: , , , , , , , ,
Tags: , , , , , , ,

Posted in FHA Mortgage | No Comments »




Search :


Related search on ‘smaller institutions’

  1. Government Grants To your Modest Business | Business and Finance

    Sadly, the truth is always that Government grants are rather complicated to attain when in comparison to loans provided out by financial institutions. They are provided only to those people small company corporations that fall below a ...

  1. Why Investing in a Mini Storage Business is Less Risky than Other ...

    This steady increase in due to many factors including the tendency for individuals to keep products and items they no longer use on a regular basis, the trend towards smaller, more manageable residences with less on-site storage, ... Banks and other lending institutions, knowing that these types of businesses are generally profitable, usually bend over backwards to grant a loan to a potential investor. For all of these reasons owning a self storage facility can demand a ...

  1. Movement Begins for Publicly Owned Banks | Watts Cookin'

    The bill has generated so much interest that Steve Kirby, chair of the Financial Institutions and Insurance Committee, has scheduled a special work session on it. According to John Nichols [7] in The Nation, the State Bank of Washington was formally proposed by ... North Dakota's economy is ten times smaller than Michigan's, suggesting that Michigan could generate $500 million per year in this way; Washington State and Illinois present similarly inviting possibilities. ...

  1. Corpocracy Rules: FDIC Chief Sees 'Backdoor Bailouts' in Senate ...

    Bair, a Kansas native who once worked as a bank teller herself, said large banks have pulled back on credit more than smaller institutions, and this is hampering the economic recovery. Last year, banks' loan balances fell by 7.5 percent ...

  1. SanDisk ? Flash memory card ? 8 GB ? Class 2 ? microSDHC with ...

    This card can hold about 8-9 full-length movies these institutions. Box ?????< br /> ?This package includes the 8 GB microSDHC card , and a very small USB-2. 0 microSDHC reader, such that can be connected directly to Mac / Windows ...

  1. The Purple Pinup Guru Platform

    Our biggest banks and financial institutions have to become significantly smaller if we are to make any progress at all. Kaufman on current financial reform proposals: Unfortunately, the current reform proposals focus more on ...

  1. The Growing Movement for Publicly Owned Banks « Outra Política

    State funds and money held by penal, educational, and industrial institutions owned by the state would be deposited in the bank and would serve as reserves for making loans. The bank could also serve as a clearinghouse ... North Dakota's economy is ten times smaller than Michigan's, suggesting that Michigan could generate $500 million per year in this way; Washington State and Illinois present similarly inviting possibilities. That defuses the objection raised in a March ...

  1. Revamping Our Financial Regulations: Some Notes on the Senate ...

    Instead of blunt ratios, it might be wiser to use risk-weights for leverage caps (e.g. a lower leverage cap on high-risk deals) and potentially differentiate them between different types of financial institutions while monitoring their risk ... This federal agency could still grant charters of different types to different banks (e.g. smaller banks may need less regulation and oversight), but it would possibly be a big improvement compared to the current patchwork of ...

  1. Jim Libby's Economic Policy Blog: Why Favor Private Enterprise ...

    While this proposal may especially wreak havoc on smaller campuses such as Fort Kent and Machias, the larger institutions of Orono and Southern Maine will not be spared fiscal pain. Program consolidations and outright program ...

  1. Just In Place: Globalization: Postmodernism and Constructivism

    This approach provides a significant balance between two extremes of grand analyses investigating the state and its institutions and smaller level analyses investigating the individual's influence and contribution. ...

Top incoming search terms for this post