Reverse Mortgage Questions
FAQ About Getting A Reverse Mortgage in Tampa FL
Q. Do I still personally own my house? Who is in title to my house?
A. You keep complete ownership of your home. The title of your house always is still in your name not in the name of the loan provider.
Q. Can title be held in the name of my trust rather then my name?
A. Yes, if it is revocable and it fulfills HUD’s specifications.
Q. Do I have to reside in my home?
A. Absolutely yes. Nonetheless, if you must be in the hospital and transferred into a health facility, you may be absent from your house up to 12 months.
Q. What happens when I pass away? Could the lending company take my home?
A. Nope. After you die, your heirs can sell the property and repay the reverse mortgage or they might refinance the debt and keep your home. All outstanding home equity reverts back to the sellers or their estate.
Q. When must the home loan be paid back?
A. As soon as last living borrower dies, sells the home, or entirely moves out of the home.
Q. Will there be any prepayment penalty?
A. Nope. You may make the full or partial repayment at any time with no penalty.
Q. Who will pay for my real estate taxes and insurance?
A. You have to pay real estate taxes and insurance.
Q. What happens if the loan amount becomes higher than the value of my house?
A. A reverse mortgage is a “nonrecourse” mortgage loan. You cant ever owe greater than the appraised value of your home at the time of settlement even if the mortgage loan balance surpasses the value of your property.
Q. Could the cash from the reverse mortgage affect my Social Security or Medicare?
A. No, it won’t affect Social Security and Medicare. It’s recommended that you get hold of your local agencies and tax professional for your personal specific situation.
Q. What sorts of reverse home mortgages are obtainable?
A. Federally-insured reverse home mortgages. The most popular reverse mortgage (and very controlled) is the federally-insured Home Equity Conversion Mortgage (HECM). About 90% of all the reverse mortgage loans are HECMs.
Proprietary reverse mortgages. These types of reverse mortgage loans are backed by the companies that develop them. They have different benefits and are usually used in higher valued homes with hardly any restraints on property value or the dollar value of the loan.
Q. What is the role of the counseling agency? Will it be mandatory?
A. 3rd party counseling is required for all reverse mortgage loans. This mandatory counseling provides you with reverse mortgage information and facts originating from a disinterested third party. The objective of the counseling is always to make sure that the homeowner(s) understand the reverse mortgage program and see if other possibilities can be had.
Q. Will I qualify for a reverse mortgage?
A. All homeowners on the property title must be a minimum of 62, or older, own a home with equity and occupy the home as a principal residence.
Q. Just how much loan proceeds could I receive from a reverse home loan?
A. The total amount available to you depends on an equation that factors in: program type, age of the youngest borrower, valuation on your property, mortgage rate, county your home is located in, and the balance of any liens on your property. We will help you in reviewing your options and determine the maximum amount of cash that will be accessible.
Q. How much does it cost to get a reverse mortgage?
A. Just like a forward loan, you have to pay an origination fee along with standard settlement costs. If you decide on a federally-insured Home Equity Conversion Mortgage (HECM-pronounced “heck-um”) you’ll pay a Federal housing administration insurance premium. All charges can be included in the reverse mortgage and that means you don’t have any out of pocket expenditures.
Q. How do I receive my funds?
A. With most reverse home loans you’ve got a number of payment solutions to suit your needs.
All at once (lump sum)
Have monthly payments for a fixed period of time
Receive monthly payments for as long as you live in the home (tenure)
Line of Credit to be drawn upon at your discretion
Or a combination of the programs