The recent economic downturn and the increased cost of living have made it difficult for many senior citizens to cover expenses on fixed retirement income. That’s why many people are looking to reverse mortgage specialists for a loan that they can afford to pay.
If you or someone you know is having difficulty in making ends meet with the retirement income, you should consider applying for the reverse mortgage loan option. Here are the 3 questions to ask the reverse mortgage specialists before obtaining the loan.
1. Can I obtain a reverse mortgage if there is a mortgage on the home?
Know that lenders put different requirements when some mortgage is left on the home. Most of them require that you pay off the remaining mortgage at the time of the closing. You can use the proceeds of the reverse mortgage loan for this purpose.
2. What homes are eligible for the mortgage loan?
Reverse mortgage lenders put certain restrictions on the type of home that is eligible for the loan. The following homes generally do not qualify for a home mortgage loan:
* Secondary residences
* Vacation homes
* Manufactured or mobile homes
* Rental properties with four or more units on leased lands
Moreover, the lenders may require that you do certain repairs on the home before or right after the closing. You must ask this question before applying for the loan to ensure that you are eligible for the loan.
3. How will the Loan Payment be collected at the End of Term?
Lastly, you must ask the lender how the payment will be collected once due. Note that normally you will not be allowed to make the loan repayment until the house is sold either when you move out or you pass away. However, there are certain conditions that if violated could result in the reverse mortgage specialists putting your house on foreclosure.
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