Reverse Mortgages – Bradenton, Sarasota, Palmetto, Parrish, Venice, Port Charlotte, Bradenton Beach, North Fort, Long Boat Key, Anna Maria Island, Homles Beach, Florida

Reverse mortgages are excellent loan options, especially for residents in Florida. At Sunrise Financial, we can gladly assist you with all of your reverse mortgage needs!The Federal Housing Administration, more commonly referred to as “FHA”, has been offering mortgage insurance on loans since its establishment in 1934. This coverage is provided mainly for single and multiple-family homes, but other approved purchases may be eligible. Loans technically are not issued by the FHA, yet its mortgage insurance certainly makes a buyer far more attractive to lenders.This is crucial because FHA mortgage insurance protects a lender in the event a homeowner defaults on their mortgage. A great highlight regarding FHA-insured loans is their down payments are low, plus insurance costs are often included in mortgage installments.FHA reverse mortgages are specifically intended for homeowners who are age 62 and up. This loan program offers a homeowner the opportunity to transform their home’s equity into a line of credit or income.  FHA reverse mortgage loans are also called “Home Equity Conversion Mortgages”, and they’re paid back when a homeowner no longer lives in a home.Closing costs are allowed to be financed with reverse mortgages, as these loans are based on the current interest rates. Borrowers utilizing reverse mortgages must be occupying single-family homes or one-to-four-unit properties. This loan program also may indeed be allowed for condominiums and manufactured lots, if the FHA approves them.Among the initial requirements for reverse mortgages is that the loan takes into consideration the age of the youngest borrower in the event co-signers are used. Next, buyers must both own and occupy the property as their primary housing. Also, homeowners are asked to receive buyer counseling and guidance before their HECM loan becomes approved.

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.