Florida Reverse Mortgage - Questions

What are Reverse Mortgages?
Reverse Mortgages are occasionally called a Home Equity Conversion Mortgages (HECM). They help our seniors to remain in their homes and be independent. Reverse Mortgages in Florida were first conceived by U.S. Department of Housing and Urban Development (HUD) for the financial security of the elderly Americans. The money from a Reverse Mortgage Florida home loan can be used to meet medical expenses, social security, fix up their homes and for many other expenses.
What is Reverse Mortgage program?
A reverse mortgage is home loans for a senior American to use the equity in a home for whatever they desire. Equity builds up over the years. A Reverse Mortgage Florida program not only gives the holder the equity, but also to live in your home and gets paid to live there!
Who is eligible for a reverse mortgage in Florida?
To be eligible, the homeowner should be 62 years or more of age. They must live in their home. They need not have an income. Credit is also not required.
Is the income from the reverse mortgage florida taxable?
No. Generally the money you get from reverse mortgage is not taxable. But you must check with your accountant to see what your individual situation is like.
Will this income affect my Social Security or Medicare benefits?
No. The money from a reverse mortgage is not treated as income. As a result your SSI nor other benefits that you receive as a senior citizen are affected.
Are all types of homes eligible under the reverse mortgage program?
No. Your home must be a single family dwelling or your own two-to-four unit property. Townhouses, units in FHA-approved condominiums, detached homes and some manufactured homes are also eligible. It is possible for condominiums to qualify under the Spot Loan program. The home must confirm to HUD minimum property standards and be in a reasonable condition. Home repairs in some cases can be made after the closing of a reverse mortgage Florida.
How do I assess my situation?
You can assess the different reverse mortgages Florida absolutely free. You can use the no-obligation computerized comparison of the available plans. Just fill out the free analysis form and we will contact you shortly. You can also call us up at 407.774.0112.
How much money can I get from my home?
The money you can borrow depends on your age, the current interest rate, other loan fees, and the appraised value of your home or FHA's mortgage limits for your area, whichever is less. Generally, you can borrow more if your home is more valuable, the older you are, and the lower the interest. We would gladly offer you a free analysis, simply here.
How will I receive my money?
You have four options:
- Lump Sum
- Monthly Payments (your choice of loan advances for a specific period, or for as long as you live in your home)
- Line of Credit (unscheduled payments or in installments, in the period and amounts of your choice until you exhaust the line of credit)
- Any combination of the above three choices
In which way is a reverse mortgage Florida different from a bank-originated home equity loan?
For a bank-originated home equity loan, your income versus debt ratio must be sufficient. The mortgage payments must be monthly. This is true with a home equity line of credit or a traditional second hand mortgage. But in the case of reverse mortgage, your income does not matter. But the amount you borrow would depend on your age, the current interest rate, other loan fees, and the appraised value of your home or FHA's mortgage limits for your area, whichever is less. You can generally borrow more if your home is more valuable, the interest is lower, and the older you are. Just like any other homeowners, you still will have to pay your estate taxes and other conventional payments like utilities. If you miss your payment, you still will not have to vacate your house with an FHA-insured HUD Reverse Mortgage.
What if I outlive the loan? Can the lender take my home away?
No! Nor is the loan due. You need not repay the loan as long as you or one of the borrowers (ex. spouse) continues to live in the house and keeps the taxes and insurance current. You can never owe more than your home's value.
Will I still have an estate that I can leave to my heirs?
Yes. When you sell your home or no longer use it for your primary residence, you or your estate will repay the cash you received from the reverse mortgage, plus interest and other fees, to the lender. If there is any remaining equity in your home, then it belongs to you or to your heirs. The HUD's reverse mortgage Florida loan does not affect any of your other assets. This debt will never be passed along to the estate or heirs.
What are the "Out of Pocket Costs"?
Usually there is only one. You will have to pay an application fee that includes the cost of an appraisal. (Other loan costs may be financed into your Reverse Mortgage Florida).
What if I apply when I didn't buy my present house with FHA mortgage insurance?
It does not matter. But your property must meet HUD minimum property standards. Your new HUD reverse mortgage will be a new FHA-insured mortgage loan.