Is there any suitable mortgage plan for seniors? Well, reverse mortgage represents the best option in this respect. Those seniors who are at least above 65 years are allowed to get this kind of mortgage loan. These mortgages have now become a popular concept these days.
In this case, home’s equities are being converted into liquid cash and this is how the homeowners can get funds for making their requirements fulfilled. But for acquiring this mortgage loan, the person should have his own house. Since traditional age, this particular mortgage concept is going on and thus there is nothing as such new in it.
Special guide to reverse mortgage
• Senior fellows of 65 or above can apply for reverse mortgage. • These fellows should own their own house. • House units are being mortgaged for receiving hard cash from the lenders. • In this case, no other eligibility criteria are there other than having own house. • The loan can be received easily and instantly as a result of which there is no requirement of waiting for the same for a long time.
In this case, the borrowers will receive payments from lenders but the lenders will not receive anything from borrowers. This is the reason the mortgage is called reverse.
The homeowners should pay off all the legalized fees for house maintenance like taxation fees, dues of homeowners’ association, homeowners’ insurance and many more.
What are the highlighting features of reverse mortgage?
There are some essential features of reverse mortgage and you should have a fair idea about the same in case you do not have any basic knowledge about this mortgage scheme.Some of the most highlighted ones are as follows:-
Access Only 60%
• Fund limit is definitely there and thus the borrowers cannot go beyond the same. The borrowers will be allowed to make access of only 60 percent of total loan approved and this is one of the special features of reverse mortgage.
Sometimes, additional 10 percent amount can also be accessed by the borrowers in some exceptional cases.• Mortgage borrowers need to be thoroughly accessed financially and then on the basis of the assessment reports, the lenders take the decision whether to lend money or not.
Accessing Little More
In case of other property liens or existing mortgage, the borrowers might get the chance of accessing a little more than the standard rate.But existing mortgages should be paid off completely then only this advantage can be availed.
Some of the most important aspects that are looked into for this purpose are investments, pensions, social security, income documents, bank statements, tax returns and other related ones. Credit troubles are also to be examined in order to find out the credit-history of the borrowers.
The lenders will also see to this fact that whether the amount which is being issued to the borrowers is sufficient for bearing family expenses or not. The lenders will also check out that whether homeowners are getting income from any other source or not.