Home Equity Conversion Mortgage The Federal Savings Bank
A home equity conversion mortgage is a type of Federal Housing Administration (FHA) insured reverse mortgage. Home equity conversion mortgages allow seniors to convert the equity in their home to cash. To qualify for a reverse mortgage in the United States, the borrower must be at least 62 years of age and must occupy the property as his or her principal residence. In addition, any mortgage on the property must be low enough that it will be paid off with the reverse mortgage proceeds. Reverse mortgages follow FHA eligibility standards for property types, meaning most 1–4 family dwellings, FHA approved condominiums, and PUD's qualify. Manufactured housing qualifies based on standard FHA guidelines.
Before starting the loan process for an FHA/HUD-approved reverse mortgage, applicants must take an approved counseling course. The counseling is meant to protect borrowers, although the quality of counseling has been criticized by groups such as the Consumer Financial Protection Bureau. To get started on a home equity conversion mortgage The Federal Savings Bank is the lender to call.
Interest accrues on the outstanding loan balance, but no payments must be made until the home is sold or the borrower(s) die, at which point the mortgage must be repaid entirely. Because the home secures the mortgage, no credit check is made on the borrower.
Privately sponsored reverse mortgages might allow for higher borrowing amounts, and have lower costs than home equity conversion mortgages, but HECMs typically have a lower interest rate. The economics of a HECM versus a privately sponsored reverse mortgage depends on how long the borrower expects to live or own the home. Since the FHA insures HECM loans, the borrower will not owe more than value of the loan in the event that the loan exceeds the value of the home's equity.
A home equity loan is an alternative to a reverse mortgage. Unlike a reverse mortgage, however, a home equity loan will require a credit check. Additionally, a home equity loan will most likely have substantially lower costs than a HECM, but a higher interest rate.
For a home equity loan or a home equity conversion mortgage The Federal Savings Bank is an excellent choice. Their Perfect Mortgage Experience will guide you smoothly through the process.
The Federal Savings Banks
http://www.thefederalsavingsbank.com
A home equity conversion mortgage is a type of Federal Housing Administration (FHA) insured reverse mortgage. Home equity conversion mortgages allow seniors to convert the equity in their home to cash. To qualify for a reverse mortgage in the United States, the borrower must be at least 62 years of age and must occupy the property as his or her principal residence. In addition, any mortgage on the property must be low enough that it will be paid off with the reverse mortgage proceeds. Reverse mortgages follow FHA eligibility standards for property types, meaning most 1–4 family dwellings, FHA approved condominiums, and PUD's qualify. Manufactured housing qualifies based on standard FHA guidelines.
Before starting the loan process for an FHA/HUD-approved reverse mortgage, applicants must take an approved counseling course. The counseling is meant to protect borrowers, although the quality of counseling has been criticized by groups such as the Consumer Financial Protection Bureau. To get started on a home equity conversion mortgage The Federal Savings Bank is the lender to call.
Interest accrues on the outstanding loan balance, but no payments must be made until the home is sold or the borrower(s) die, at which point the mortgage must be repaid entirely. Because the home secures the mortgage, no credit check is made on the borrower.
Privately sponsored reverse mortgages might allow for higher borrowing amounts, and have lower costs than home equity conversion mortgages, but HECMs typically have a lower interest rate. The economics of a HECM versus a privately sponsored reverse mortgage depends on how long the borrower expects to live or own the home. Since the FHA insures HECM loans, the borrower will not owe more than value of the loan in the event that the loan exceeds the value of the home's equity.
A home equity loan is an alternative to a reverse mortgage. Unlike a reverse mortgage, however, a home equity loan will require a credit check. Additionally, a home equity loan will most likely have substantially lower costs than a HECM, but a higher interest rate.
For a home equity loan or a home equity conversion mortgage The Federal Savings Bank is an excellent choice. Their Perfect Mortgage Experience will guide you smoothly through the process.
The Federal Savings Banks
http://www.thefederalsavingsbank.com