{"id":1404,"date":"2008-06-08T16:26:05","date_gmt":"2008-06-08T21:26:05","guid":{"rendered":"http:\/\/magic1host.com\/blog\/2008\/06\/08\/the-three-types-of-reverse-mortgages\/"},"modified":"2008-06-08T16:26:05","modified_gmt":"2008-06-08T21:26:05","slug":"the-three-types-of-reverse-mortgages","status":"publish","type":"post","link":"https:\/\/magic1host.com\/blog\/?p=1404","title":{"rendered":"The Three Types of Reverse Mortgages"},"content":{"rendered":"
by Igor Buces<\/div>\n

Seniors over 62 can take advantage of the equity they have build in their home by applying for a reverse mortgage. A reverse home loan can help seniors because it works as a loan advance. With this type of loan, the owner<\/a> doesn’t need to make monthly payments back to the bank and doesn’t need to pay back any of the money for as long as the owner lives in the property.<\/p>\n

The homeowner can never be thrown out of the home for lack of payment since there is no money to pay back. It is a good type of loan for seniors with a decreasing income but who would like to stay in the homes they have had for a long time The owner can choose to access the money in one of three ways: a credit<\/a> line, a one-time payment or a regular monthly payment.<\/p>\n

Owners can apply for three different types of reverse home mortgages: single purpose reverse mortgage, federally insured reverse mortgage and private reverse mortgage.<\/p>\n

Single Purpose Reverse Home Loan<\/p>\n

This type of reverse mortgages is offered by some Government organizations and non-profit agencies. It’s the cheapest of the reverse mortgage available. However, there are more hurdles to go over to qualify for this loan. The owner must be in the lower income bracket and the home loan must be used for a specific pre-approved purpose (home improvements, repairs or to pay real estate<\/a> taxes.)<\/p>\n

Federally Insured Reverse Mortgage<\/p>\n

The US Department of Housing and Urban Development (HUD) backs this reverse home mortgage. This type of reverse mortgage is also known as a HECM (Home Equity Conversion Mortgage.) It’s a little more expensive than the single purpose reverse mortgage.<\/p>\n

The biggest difference is that you can use the money for whatever reason you want. It is also an easier loan to qualify for and it’s available all over the country. This type of reverse mortgage is by far the most popular of the three.<\/p>\n

Proprietary Reverse Home Mortgage<\/p>\n

Proprietary reverse mortgages are loans issue by private companies that haven’t been approved by the FHA. They have the same basic requirements than HECMs.<\/p>\n

The biggest drawback is its cost. Since it doesn’t need to comply with federal regulations, companies can get away with charging to much money to unsuspected senior citizens.<\/p>\n

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About the Author:<\/div>\n
To find additional articles<\/a> about how a senior reverse mortgage<\/a> works, visit our website. In it you’ll find professional advice on anything having to do with a reverse mortgage<\/a><\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

Seniors over 62 can take advantage of the equity they have build in their home by applying for a reverse mortgage. A reverse home loan can help seniors because it works as a loan advance. With this type of loan, the owner doesn’t need to make monthly payments back to the bank and doesn’t need to pay back any of the money for as long as the owner lives in the property.<\/p>\n","protected":false},"author":187,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3],"tags":[77],"class_list":["post-1404","post","type-post","status-publish","format-standard","hentry","category-business","tag-business"],"_links":{"self":[{"href":"https:\/\/magic1host.com\/blog\/index.php?rest_route=\/wp\/v2\/posts\/1404","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/magic1host.com\/blog\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/magic1host.com\/blog\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/magic1host.com\/blog\/index.php?rest_route=\/wp\/v2\/users\/187"}],"replies":[{"embeddable":true,"href":"https:\/\/magic1host.com\/blog\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=1404"}],"version-history":[{"count":0,"href":"https:\/\/magic1host.com\/blog\/index.php?rest_route=\/wp\/v2\/posts\/1404\/revisions"}],"wp:attachment":[{"href":"https:\/\/magic1host.com\/blog\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=1404"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/magic1host.com\/blog\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=1404"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/magic1host.com\/blog\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=1404"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}