Florida Reverse Mortgages and Rates
Reverse mortgages are an excellent solution to financial concerns for many seniors across Florida and Home Equity Conversion Mortgage (HECMs) are the most popular reverse mortgage available. However, they are not for everyone, and applicants should be confident that they understand the negatives as well as the positives–prior to signing up for a reverse mortgage.
Reverse Mortgage Highlights
- No monthly payments
- The lender pays you
- No income or credit requirements
- Convert your equity into cash
- HECMs are insured by the Federal Housing Administration
- Mortgage Insurance Premium (MIP) in conjunction with Florida homestead law helps protects you from losing your home.
Reverse Mortgage Loans Available in Florida
To be eligible for a Reverse Mortgage the borrowers must:
- Be 62 years old or more
- Must own the property and occupy it as a primary residence
- Must maintain the home with required repairs.
- Pay the insurance and property taxes.
- The Property must meet FHA property standards
- The applicants must participate in an informational counseling session
The Reverse Mortgage Loan is based on:
- The age of the youngest borrower
- The current interest rate
- The lesser of the appraised value or the FHA insurance limit
Reverse mortgages can be used to:
- Pay off debts
- Pay for medications or long term care needs
- Pay property taxes
- To go on vacation
- Pay for education of grandchildren
- Pretty much anything else you can think of
- Research the best available options based on your requirements by using a qualified and experienced mortgage broker.
- In order for seniors to be fully aware of the financial implications, they MUST attend third party counseling through official HUD – approved agencies. This is to ensure that they understand the type of reverse mortgage they are about to sign. Counseling can be arranged by contacting the National HECM Counseling Network or directly through the HUD.
- The application for the reverse mortgage will be completed with our assistance and will include your agreed payment options:
- Lump sum
- Monthly payment which can be for a designated period of time or as long as you live in the home
- A line of credit which can include installments or unscheduled payments, which are available until the line of credit expires or is exhausted.
- A combination of the above three
- The processing of your application will include your lender ordering the appraisal, a title report, a credit report, and lien pay-offs.The appraiser will uncover any structural defects or repairs that maybe required, and determine value of your home.
- Once all of the information has been collected, the lender will finalize the necessary parameters, package and submit the loan for the underwriting, and then process final approval.
- The closing is only scheduled once the loan has been approved, initial interest rates are calculated, and normal closing costs are included as part of the loan.
- There is a mandatory three day cooling off period stipulated by law. After which, the loan is applied to any previous debts on the property and funds are disbursed according to your payment option.
Unlike traditional loans, there are no mothy payments to be made during the lifetime of the loan. The debt from the reverse mortgage becomes payable in full immediately when:
- The home is sold
- The home is no longer the primary residence
- The borrower(s) pass away
Upon the death of the borrower(s), the loan will be repaid from the sale of the home, or by refinancing the existing reverse mortgage. All of the remaining equity belongs to the heirs or to the estate.
Counseling information for reverse mortgage applicants typically takes 1-4 hours.
The counselor must be employed by a third party non-profit or public agency that is approved by the HUD (US Department of Housing and Urban Development). The counselor is required to use loan analysis and comparison software which follows the HUD’s counseling policies and procedures.
What is Included in the Class?
- A complete review of your budget, which includes your current income and outgoing expenses.
- A complete review of that TALC Disclosure, which you will receive from your lender regarding the future total cost of the loan.
- A complete review of interest rates which are involved in the reverse mortgage you are about to sign.
- A complete review of the property repairs, if any are applicable.
- A complete review of terminology used in the contractual paperwork, including definitions.
- Discuss any other possible options which may be available to you, given your current financial and personal situation.
- The property must be your primary residence
- You cannot vacate it for more than 6 months in a calendar year. (Homestead)
- You can lose your home if you do not pay your property taxes HOA or home owners insurance.
- You can also lose your home to mechanics lien (outstanding bills from contractors)
For further information about getting the right mortgage for you and to arrange your ‘NO-FEE ASSESSMENT’
CALL US on (+1) 941-921-1110