By Michael Branson
Since first offering reverse mortgages, I've often been asked, How do I/we know if a reverse mortgage is right for me/us? This is a question that has a different answer for different people. I always start with the same first response, The first thing I would recommend is that you seek the guidance of a qualified financial advisor. After having given that advice, I am only too happy to go through the circumstances for the individual borrowers and give them their options.
A reverse mortgage is not an inexpensive loan. The loan fees are based on the maximum credit limit for the HUD lending area for the government Home Equity Conversion Mortgage (HECM). The loan also has an up-front mortgage insurance fee of 2% of the maximum lending limit which also increases the costs. Add to these the normal costs such as appraisal, escrow, title fees, etc., and it's not uncommon for the costs to get up to $17,000 or slightly more in some of the higher HUD lending areas.
While the costs seem high, the insurance on this loan are more for borrower protection than any other loan the government insures. This insurance protects the borrowers in two ways. Firstly, if a lender ever goes out of business or fails to pay a borrower in a timely manner for any reason, HUD steps in and makes certain that the borrower receives a steady stream of payments. As you read about lenders going out of business, with a HUD insured loan, you never have to worry about whether or not your payments will be made to you. Also, HUD will insure that the borrower will never owe more than the property is worth regardless of how much money the borrower receives over the years, how much interest accrues, or what property values do in the future. Everyone hopes that values will continue to go up, but if the values should fall, the senior borrower and their heirs will never owe more than the property is worth.
So now that you know what the costs are, how can you decide if you should go ahead with the reverse mortgage? If you're a senior homeowner, ask yourself the following questions:
Do you find yourself short of funds every month?
Do you wish you had money to repair your home but don't and can't borrow and make payments?
Are there rising medical costs you can't quite cover and your insurance doesn't cover them either?
Are you making a monthly payment that is keeping you from being able to live your life as you would like?
Do you wish you could travel, or help a loved one through their education but you just don't have the funds in the bank to do so?
If you answered yes to any of the questions above, it may be time for you to put your equity to work for you with a reverse mortgage!
Michael G. Branson (CEO All Reverse Mortgage Company)is a Mortgage Broker who has over 31 years of mortgage banking experience. Toll Free (888) 801-2762
Click Here to visit our HomepageClick Here to watch the Reverse Mortgage Benefit Video
Article Source: http://EzineArticles.com/?expert=Michael_Branson
What Does The Lender Need To Know On A Reverse Mortgage?
ป้ายกำกับ: Mortgage Refinace
By Michael Branson
You've made the decision to get a reverse mortgage and you've heard that there is no income or credit qualifying so you think you will have no issues getting your loan. All you have to do is get your counseling, sign all the paperwork and you're set, right? Not exactly. There are some things you need to know about the programs that could keep you from qualifying, or your property from qualifying and sometimes these items are overlooked by loan officers and prequalification systems.
Firstly, there are no minimum credit score requirements, but you can't currently be going through bankruptcy proceedings and if you are still paying on a bankruptcy repayment schedule, then you may be required to have a minimum number of months paid in a timely manner. If you are on a schedule, then you need to let your lender know. The reverse mortgage programs I have worked with will not allow you to be delinquent on a federal obligation. If you have co-signed for a family member who has delinquent government-insured student loans, that could keep your reverse mortgage from being approved. Foreclosures do not mean an automatic denial under most reverse mortgage programs, provided that the property has not already gone to sale.
The next thing that escapes many prequalification systems is your property type. Condominiums are acceptable, but the project has to meet certain criteria. For instance, if you are applying for the government HECM loan, the lender checks an approval list and if your project is on it, no problem. If it is not there, they can apply for a spot approval for your loan. If the project has been rejected, your project is not eligible for the government program and chances are whatever made it ineligible for that program may also render it ineligible for other programs.
The project typically cannot be mainly rentals, they must be 51% or more of the units occupied by the unit owners. Manufactured homes built after June 15, 1976 are acceptable for the government HECM program provided they are on a permanent foundation, are taxed as real property and the Manufacturer would have had to obtained HUD tags when the home was built and those tags still have to be available for the appraiser to view at the time of appraisal. Single family residences in commercial or agricultural zoned areas, properties with excess acreage, or unique properties could also render a property ineligible for a reverse mortgage.
With senior borrowers, many times you have title issues to keep in mind as well. Trusts, conservatorships, powers of attorney, all are fine as long as they are done so that they meet reverse mortgage requirements. If you have any of these instruments, let your reverse mortgage originator know right away so that he or she can have them reviewed for acceptance. Also, when you have lived in your property for 20-50 years, there are any number of things that can come up on the title that may need to be resolved. If you are aware of any title issues (liens from lawsuits, back taxes, work that needed to be done), again, let your originator know as soon as possible so that those issues can be resolved before they delay your loan. Better to find out about all potential issues before costs are incurred or a lot of time is spent.
Michael G. Branson (CEO All Reverse Mortgage Company)is a Mortgage Broker who has over 31 years of mortgage banking experience. Toll Free (888) 801-2762
Click Here to visit our HomepageClick Here to watch the Reverse Mortgage Benefit Video
Article Source: http://EzineArticles.com/?expert=Michael_Branson
You've made the decision to get a reverse mortgage and you've heard that there is no income or credit qualifying so you think you will have no issues getting your loan. All you have to do is get your counseling, sign all the paperwork and you're set, right? Not exactly. There are some things you need to know about the programs that could keep you from qualifying, or your property from qualifying and sometimes these items are overlooked by loan officers and prequalification systems.
Firstly, there are no minimum credit score requirements, but you can't currently be going through bankruptcy proceedings and if you are still paying on a bankruptcy repayment schedule, then you may be required to have a minimum number of months paid in a timely manner. If you are on a schedule, then you need to let your lender know. The reverse mortgage programs I have worked with will not allow you to be delinquent on a federal obligation. If you have co-signed for a family member who has delinquent government-insured student loans, that could keep your reverse mortgage from being approved. Foreclosures do not mean an automatic denial under most reverse mortgage programs, provided that the property has not already gone to sale.
The next thing that escapes many prequalification systems is your property type. Condominiums are acceptable, but the project has to meet certain criteria. For instance, if you are applying for the government HECM loan, the lender checks an approval list and if your project is on it, no problem. If it is not there, they can apply for a spot approval for your loan. If the project has been rejected, your project is not eligible for the government program and chances are whatever made it ineligible for that program may also render it ineligible for other programs.
The project typically cannot be mainly rentals, they must be 51% or more of the units occupied by the unit owners. Manufactured homes built after June 15, 1976 are acceptable for the government HECM program provided they are on a permanent foundation, are taxed as real property and the Manufacturer would have had to obtained HUD tags when the home was built and those tags still have to be available for the appraiser to view at the time of appraisal. Single family residences in commercial or agricultural zoned areas, properties with excess acreage, or unique properties could also render a property ineligible for a reverse mortgage.
With senior borrowers, many times you have title issues to keep in mind as well. Trusts, conservatorships, powers of attorney, all are fine as long as they are done so that they meet reverse mortgage requirements. If you have any of these instruments, let your reverse mortgage originator know right away so that he or she can have them reviewed for acceptance. Also, when you have lived in your property for 20-50 years, there are any number of things that can come up on the title that may need to be resolved. If you are aware of any title issues (liens from lawsuits, back taxes, work that needed to be done), again, let your originator know as soon as possible so that those issues can be resolved before they delay your loan. Better to find out about all potential issues before costs are incurred or a lot of time is spent.
Michael G. Branson (CEO All Reverse Mortgage Company)is a Mortgage Broker who has over 31 years of mortgage banking experience. Toll Free (888) 801-2762
Click Here to visit our HomepageClick Here to watch the Reverse Mortgage Benefit Video
Article Source: http://EzineArticles.com/?expert=Michael_Branson
Tips For Creating a Spacious Deck
ป้ายกำกับ: DIY
By Adam Peters
If you are looking for ways and means to decorate your decks for your house, this article will provide you the relevant information in that direction. You can use these tips individually or in conjunction with your imagination and the amount of money you can afford to spend..
Here are some ideas:
To begin with, identify the utility of your decks. This is where you conduct your functions, be it social or otherwise. BBQ parties are the other reason. And still others could be reasons as simple as enjoying nature or simply sipping coffee and relaxing on your day off, on a romantic note. It all depends upon how much space you have.
A good choice so you can utilize your space for all occasions would be to go for a pattern of wavy lines. This pattern creates the mood fpr any occasion. You only need to remember a few things like keeping the space clean and clear of too many objects. Don't fill it with too many things. It feels great to have one spacious deck rather than two divided spaces.
The next thing to bear in mind while crafting this place is to provide as many access points as possible. The thumb rule would be for one every 15 to 20 feet. This is mainly done to avoid any constraints during parties and BBQs. You never know when you feel like fitting some equipment or lighting to pep up the fun.
Once this is planned, check the railings next. Ensure that you can do away with any sharp edges or corners. Play safe. Moreover, it also becomes a hurdle to the overall flowing lines feel of the deck. So the thumb rule is to avoid pointed or sharp railings unless you have a good enough reason for this.
You can also use a wide variety of materials for your deck railing. Modern deck railings are known to use paints and polishes to provide the required luster and look. However, you may also consider the wooden finish for your deck railing. In the long run, you may have maintenance problems with wood, although there are ways to overcome this. On the other hand, you could consider steel, plastic and wrought iron as well. In any case, the design and choice of materials would be in proportion to the budget you set aside for this task. This is the only aspect limiting the execution of your creativity.
Again, bear in mind the safety aspect as well. You may want to make provision for the handicapped as well. This depends on your overall need. In case you choose to make this provision, you will have to make the entry and exit accessible. You will need to provide even spaces so that they do not have a problem moving around. Assess the special needs of these people and incorporate these into in the designing stage itself. It would help to consult designers and architects and other sources to understand these requirements as these may not be frequently used in individual properties unless there is a big need for the same.
Adam Peters is the consultant for http://www.deck-porch-railings.com . For additional information on deck plan or deck ideas subjects have a look at his web.
Article Source: http://EzineArticles.com/?expert=Adam_Peters
If you are looking for ways and means to decorate your decks for your house, this article will provide you the relevant information in that direction. You can use these tips individually or in conjunction with your imagination and the amount of money you can afford to spend..
Here are some ideas:
To begin with, identify the utility of your decks. This is where you conduct your functions, be it social or otherwise. BBQ parties are the other reason. And still others could be reasons as simple as enjoying nature or simply sipping coffee and relaxing on your day off, on a romantic note. It all depends upon how much space you have.
A good choice so you can utilize your space for all occasions would be to go for a pattern of wavy lines. This pattern creates the mood fpr any occasion. You only need to remember a few things like keeping the space clean and clear of too many objects. Don't fill it with too many things. It feels great to have one spacious deck rather than two divided spaces.
The next thing to bear in mind while crafting this place is to provide as many access points as possible. The thumb rule would be for one every 15 to 20 feet. This is mainly done to avoid any constraints during parties and BBQs. You never know when you feel like fitting some equipment or lighting to pep up the fun.
Once this is planned, check the railings next. Ensure that you can do away with any sharp edges or corners. Play safe. Moreover, it also becomes a hurdle to the overall flowing lines feel of the deck. So the thumb rule is to avoid pointed or sharp railings unless you have a good enough reason for this.
You can also use a wide variety of materials for your deck railing. Modern deck railings are known to use paints and polishes to provide the required luster and look. However, you may also consider the wooden finish for your deck railing. In the long run, you may have maintenance problems with wood, although there are ways to overcome this. On the other hand, you could consider steel, plastic and wrought iron as well. In any case, the design and choice of materials would be in proportion to the budget you set aside for this task. This is the only aspect limiting the execution of your creativity.
Again, bear in mind the safety aspect as well. You may want to make provision for the handicapped as well. This depends on your overall need. In case you choose to make this provision, you will have to make the entry and exit accessible. You will need to provide even spaces so that they do not have a problem moving around. Assess the special needs of these people and incorporate these into in the designing stage itself. It would help to consult designers and architects and other sources to understand these requirements as these may not be frequently used in individual properties unless there is a big need for the same.
Adam Peters is the consultant for http://www.deck-porch-railings.com . For additional information on deck plan or deck ideas subjects have a look at his web.
Article Source: http://EzineArticles.com/?expert=Adam_Peters
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