Many other FHA loans require sufficient income and credit to qualify, however, reverse mortgages only require the ability to pay your taxes and insurance on your property. Borrowers must have a current appraisal on their property since the reverse mortgage loan total stems from the lesser amount between the value of a home and the FHA insurance limit of $636,150.
Under reverse mortgage loan guidelines, the FHA calls for housing used for this program meet its property and flood conditions. Borrowers can acquire their funding via monthly installments, a line of credit, a lump sum or even a combination of all three options.
Payments by the borrower are not required until they sell their property, as the loan is paid back by the revenue and interest generated from the sale. The borrower is allowed to keep any remaining equity in the home after the loan is repaid.
Upon the borrower not having sufficient funds from the selling of the property to repay the loan, the difference is indeed paid by the FHA’s insurance.
Whether you’re in Bradenton, Palemetto or Sarasota, Sunrise Financial can help you with reverse mortgages! Call us today at (941) 758-6303.