The Department of Veterans Affairs (VA) offers loan programs to help servicemembers, veterans, and their families buy homes. The VA sets the rules for loan qualification, arranges the terms under which mortgages may be offered, and guarantees any loan ...
Search our library of answers
Showing 1-22 of 22 results for “reverse mortgages”
What happens if my reverse mortgage loan balance grows larger than the value of my home?
If your loan balance is more than the value of your home, you or your heirs may not have to pay the difference. None If you owe more than your home is worth, but sell your home for the appraised ...
Should I use a reverse mortgage to consolidate my debts?
Using a reverse mortgage loan to consolidate debt can be risky. If you fail to fulfill the obligations of the loan, you put your home at risk of foreclosure. Reverse mortgage loans are sometimes marketed as a way to use ...
What is a Good Faith Estimate (GFE)?
A Good Faith Estimate, also called a GFE, is a document that a lender must provide when you apply for a reverse mortgage. The GFE lists basic information about the terms of the loan offer. The GFE includes the estimated ...
If you can’t pay your property taxes or homeowners insurance, look for help right away. Home Equity Conversion Mortgages (HECMs), the most common type of reverse mortgage loan, require that you keep current on your property taxes and homeowners ...
Act quickly. If you delay or ignore the notice, you could lose your home to foreclosure. There are several ways you may have fallen into default on your reverse mortgage loan. You were late or missed paying your property charges, ...
What is covered under the Military Lending Act?
Payday loans, overdraft lines of credit, and most installment loans are covered by the Military Lending Act. As of October 3, 2016, most types of consumer loans offered to active-duty servicemembers and their dependents have to comply with the ...
What happens if I have a reverse mortgage and I want to sell my home?
When you sell your home your reverse mortgage loan will need to be paid back. If you decide to sell your home while you have a reverse mortgage loan, you will have to pay back the money you borrowed plus ...
What happens to my reverse mortgage when I die?
Reverse mortgage loans typically must be repaid, usually by selling the home, when the last borrower dies. However, non-borrowing spouses may be able to stay in the home if they meet certain criteria. Most reverse mortgages today are Home Equity ...
A Home Equity Conversion Mortgage (HECM), the most common type of reverse mortgage, is a special type of home loan only for homeowners who are 62 and older. A reverse mortgage loan, like a traditional mortgage, allows homeowners to borrow ...
Are there different types of reverse mortgages?
Yes. There are several kinds of reverse mortgage loans: (1) those insured by the Federal Housing Administration (FHA); (2) proprietary reverse mortgage loans that are not FHA-insured; and (3) single-purpose reverse mortgage loans offered by state and ...
Can anyone take out a reverse mortgage loan?
No. Home Equity Conversion Mortgages (HECMs), the most common type of reverse mortgage loan, are a special type of home loan available only to homeowners who are 62 and older. Age is one requirement for a HECM. The other requirements ...
If you are considering a reverse mortgage loan, start by understanding how one works and how it will affect you now and in the future. A detailed discussion with a reverse mortgage counselor will give you important information to help ...
How much money can I get with a reverse mortgage loan, and what are my payment options?
How much you can borrow depends on your age, the interest rate you get on your loan, and the value of your home. You have three main options for receiving your money: through a line of credit, monthly payout, or ...
If I take out a reverse mortgage loan, does the lender own my home?
No. When you take out a reverse mortgage loan, the title to your home remains with you. Most reverse mortgages are Home Equity Conversion Mortgages (HECMs). The Federal Housing Administration (FHA), a part of the Department of Housing and Urban ...
What are my responsibilities as a reverse mortgage loan borrower?
There are three main requirements that you must fulfill if you have a Home Equity Conversion Mortgage (HECM), the most common type of reverse mortgage loan. If you don’t meet these requirements, you could lose your home to foreclosure. As ...
When do I have to pay back a reverse mortgage loan?
Reverse mortgage loans typically must be repaid either when you move out of the home or when you die. However, the loan may need to be paid back sooner if the home is no longer your principal residence, you fail ...
How much does a reverse mortgage loan cost?
The cost of a reverse mortgage loan depends on the type of loan and the lender you choose. Typically, a reverse mortgage loan is more expensive than other home loans. With a reverse mortgage, you agree to repay the money ...
Can I use a reverse mortgage loan to buy a home?
Yes. There is a “Home Equity Conversion Mortgage (HECM) for Purchase” loan that allows people 62 and older to purchase a new principal residence with HECM loan proceeds. A “HECM for Purchase” loan requires that you be 62 years of ...
With a reverse mortgage loan, can my heirs keep or sell my home after I die?
It depends on whether there are coborrowers or an eligible nonborrowing spouse. If there are neither, to keep the home, heirs must pay the full loan balance. To sell it, they must repay the full loan balance, or at least ...
Reverse mortgage loans typically must be repaid either when you move out of the home or when you die. However, you may not need to immediately pay it back if you are away from your home for more than 12 ...
Yes, if you are in military service, the Servicemembers Civil Relief Act (SCRA) limits the amount of interest you can be charged for certain loans or other obligations you took out prior to entry into active-duty military service to 6 ...