Qualifying For Reverse Mortgage Florida And Requirements
This BLOG On Qualifying For Reverse Mortgage Florida And Requirements Was UPDATED On July 1st, 2018
Qualifying For Reverse Mortgage:
- Florida seniors who are at least 62 years old and have equity in their homes can be eligible to qualify for Reverse Mortgages
- HUD, the parent of FHA, has created the FHA Reverse Mortgage Loan Program for seniors with equity in their homes
- The state of Florida has the largest population of seniors
- Florida housing prices have been increasing double-digit every year since 2013
- Many homeowners have a lot of equity in their Florida homes that they can qualify for Florida Reverse Mortgages
In this article, we will discuss and cover Qualifying For Reverse Mortgage Florida And Requirements.
Eligibility Guidelines On Reverse Mortgages
Homeowners with equity in their homes and are at least 62 years old can qualify for Reverse Mortgages:
- Qualifying for reverse mortgage requires that the homeowner be at least 62 years old
- Another requirement for qualifying for a reverse mortgage is that the homeowner needs to have equity in their homes
- The biggest single expense homeowners have is their monthly mortgage payments
- Close to half of a homeowners income can go to their monthly principal, interest, taxes, and insurance payments
- The monthly PITI, principal, interest, taxes, insurance, can be extremely draining financial stress for retired seniors
Those who retired and lost their full-time income and are just counting on their social security income and/or pension income can benefit from reverse mortgages.
Homeowners Who Can Benefit From Reverse Mortgages
Seniors who have retired and are just collecting social security income will have a hard time refinancing their home loans for a cash-out refinance.
- This is due to them not having a full-time job and just relying on social security income to rely on qualifying for a traditional mortgage
- Seniors can have homes that are free and clear and tons of equity but with no income, it is next to impossible to get traditional cash-out refinance mortgage loans
- With a reverse mortgage, seniors can now get a cash-out refinance mortgage with no credit score requirements and no income verification or job required
Reverse mortgages are available for senior homeowners who are at least 62 years old and have equity in their homes.
Reverse Mortgage And Qualifying For Reverse Mortgage
A reverse mortgage is when a mortgage lender will use the equity a senior homeowner has built up over the years and allow the homeowner to borrow against the equity.
- Qualified homeowners will not have to make any more monthly payments on their home until the homeowner passes and/or sells their homes
- Reverse mortgages are only for owner-occupied residences
- So a senior cannot qualify for a reverse mortgage on their second homes or investment homes
Who Benefits From Reverse Mortgage
After the 2008 real estate and credit meltdown, many hard-working Americans, especially seniors, have literally seen their retirement accounts wiped out.
- Many folks who have retired had to go back on the workforce and seek employment
- Besides losing part, most, or all of their retirement income, food prices and other goods and services have skyrocketed so living expenses have drastically gone up
- Another proven factor is that Americans are now living longer than ever
- This is thanks to modern medicine and technological breakthrough
- Retirement accounts for many are not taking them far
- Social security income is fixed and many cannot live on just social security income
- Workers who retired making $80,000 a year have to now survive with a fraction of that with social security income and not everyone gets pension income
- There are many seniors who have equity in their homes who are facing foreclosure
- This is because they are not able to afford their monthly mortgage payment
- Due to little income, they cannot qualify for a cash-out refinance mortgage loan
HUD’s FHA reverse mortgage loan program comes to the rescue for these seniors.
How Does Reverse Mortgage Work?
As mentioned earlier, a reverse mortgage is for seniors who are at least 62 years old and intend on living in their properties.
- As long as they intend to live in their homes, there will be no principal and interest payments required
For example, here is a case scenario:
- if a homeowner is 70 years old
- has a free and clear home with no mortgage
- they can take a certain percentage of the value of the property as a one-time full payment
- does not have to make their principal and interest payments until the borrowers pass or sell their home
Homeowners Are Required To Pay Own Property Taxes And Homeowners Insurance
They will be responsible for property taxes and homeowner insurance:
- If a reverse mortgage borrower has a $25,000 first mortgage and the home is worth $100,000, the reverse mortgage borrower may be able to cash out $50,000 or more depending on how old they are
Out of the $50,000 proceeds from the reverse mortgage, the following occurs:
- $25,000 is used to pay off the first mortgage
- the reverse mortgage loan borrower does not have to pay any principal and interest payment on the $50,000 new reverse mortgage payment
- The excess $25,000 after paying the first mortgage of $25,000 goes to the borrower
- They can spend it any way they like it
The proceeds from a cash-out reverse mortgage are tax-free.
Qualifying For Reverse Mortgages With Direct Lender With No Overlays
Homeowners who are at least 62 years old with equity in their homes can qualify for reverse mortgages with Gustan Cho Associates Mortgage Group by contacting us at 800-900-8569 or texting us for a faster response. Or email us at email@example.com. We have no overlays on government and conventional loans. We are available 7 days a week, evenings, weekends, and holidays.
July 1, 2018 - 4 min read