What Is a Reverse Mortgage? In a word, a reverse mortgage is a loan. A homeowner who is 62 or older and has 50% or more home equity can borrow against the value of their home and receive funds as a lump sum, fixed monthly payment or line of credit. Unlike a forward mortgage—the type used to buy a home—a reverse mortgage doesn’t require the homeowner to make any loan payments, however it require the borrower pay their taxes and insurance.
Instead, the entire loan balance becomes due and payable when the borrower dies, moves away permanently or sells the home. Federal regulations require lenders to structure the transaction, so the loan amount doesn’t exceed the home’s value. The borrower or borrower’s estate won’t be held responsible for paying the difference if the loan balance does become larger than the home’s value. This is also known as a non-recourse loan.
Instead, the entire loan balance becomes due and payable when the borrower dies, moves away permanently or sells the home. Federal regulations require lenders to structure the transaction, so the loan amount doesn’t exceed the home’s value. The borrower or borrower’s estate won’t be held responsible for paying the difference if the loan balance does become larger than the home’s value. This is also known as a non-recourse loan.
© Copyright 2018 | Responsible Lending (a Responsible Life company) | NMLS #1212765 | All Rights Reserved. Responsible Reverse Mortgage and Responsible Lending are a DBA of Responsible Life Inc.
4547 Pine Island Rd suite 3, Matlacha FL 33993 | Phone: 833-899-4663 | Email: Hello@responsible1.com
To view our NMLS filings, CLICK HERE | Licensed in FL · Responsible Lending (a Responsible Life company) is not affiliated with or acting on behalf or at the direction of the FHA/VA/USDA or the federal government.
These materials are not from HUD, FHA, the USDA, or the VA. These materials were not approved by any government agency. They are independent of any government agency. We are not in any way affiliated with any organization listed or referenced within this website, including HUD/FHA/USDA/VA. The inclusion of various education, information, web links, or materials are not an endorsement of the Sender or any of its employees or business partners.
For information directly from HUD/FHA, visit http://www.hudclips.com For information directly from the VA, visit http://www.benefits.va.gov/HOMELOANS/ For information directly from the USDA, visit http://www.usda.gov/wps/portal/usda/usdahome?navid=GRANTS_LOANS
4547 Pine Island Rd suite 3, Matlacha FL 33993 | Phone: 833-899-4663 | Email: Hello@responsible1.com
To view our NMLS filings, CLICK HERE | Licensed in FL · Responsible Lending (a Responsible Life company) is not affiliated with or acting on behalf or at the direction of the FHA/VA/USDA or the federal government.
These materials are not from HUD, FHA, the USDA, or the VA. These materials were not approved by any government agency. They are independent of any government agency. We are not in any way affiliated with any organization listed or referenced within this website, including HUD/FHA/USDA/VA. The inclusion of various education, information, web links, or materials are not an endorsement of the Sender or any of its employees or business partners.
For information directly from HUD/FHA, visit http://www.hudclips.com For information directly from the VA, visit http://www.benefits.va.gov/HOMELOANS/ For information directly from the USDA, visit http://www.usda.gov/wps/portal/usda/usdahome?navid=GRANTS_LOANS