Remember Me
forgot your password?

Fha Reverse Mortgage Lender

The Federal Housing Administration, which is also known more commonly as the FHA, is a group that has been aiding people in getting a home since 1934. The FHA's job is to administer the government home loan insurance program, which allows for homebuyers to qualify for a home loan, is an organization that lenders must affiliate with. In addition to offering mortgage loan insurance, FHA also offers insurance for what is called a Reverse Mortgage Loan. Reverse mortgages are only available to senior citizens that are 62 years of age or older.

Reverse mortgages are mortgage loans that a person who already owns a home can take out in order to refinance that home. In addition, reverse mortgage loans can also be taken out for senior citizens that are looking for a new home to purchase, but do not want to pay monthly mortgage bills. The way a reverse mortgage works is very different from the way a traditional mortgage works; reverse mortgages do not require the borrowers (homeowners) to pay back the loan. In fact, reverse mortgage lenders actually pay the borrowers (homeowners) instead. Lenders pay in a variety ways, the most common of which are One Lump Sums, monthly payments, periodic lines of credit, or a combination thereof. The money that the homeowner receives from the lender is un-taxed, and the recipient of the money can do whatever he or she wants with funds. This can help homeowners who already have a home and have fully paid off their mortgage, or are almost done paying off their mortgage, to receive extra money for retirement without having to work, and it's tax-free. Also, this can help potential homeowners who are senior citizens by getting rid of the need to pay off monthly mortgage bills, and allows the potential new homeowner to receive money instead.

However, even though reverse mortgages loans allow borrowers to receive money, it is still considered a loan. The homeowner is not in risk of loosing his or her house, and the homeowner does not need to pay back the money later. Instead, the money is paid back through the proceeds generated from the house sale. The house can only be sold if the homeowner wishes to, if the homeowner becomes deceased, or if the homeowner is absent for more than 12 months. When the house is sold, the FHA Reverse Mortgage Lender is paid back. If the house sales for more money than the FHA Reverse Mortgage Lender is owed, then the existing homeowner or heir(s) receive the difference.

Yet, what happens in the event that the money sells for less than the reverse mortgage loan due? This can worry many people, because they may suspect that either the existing homeowner or heir(s) will have to pay back the difference to the lender. Thankfully, because of the FHA, the FHA Reverse Mortgage Lender has no worries about whether or not the home will sell lower than the amount due, and neither does the homeowner or the heir(s). The FHA removes the risk from the lender by insuring that FHA will pay back the difference to the lender, therefore everyone is safe.

For more information please visit our website on Reverse Mortgage

trinity reverse

Trinity Reverse is the leading Reverse Mortgage Company serving California since 1984.

Rate this Article: 0 / 5 stars - 0 vote(s)
Print Email Re-Publish

Add new Comment



Captcha

  • Latest Mortgage Articles
  • More from trinity reverse

Florida FHA Home loans, FHA home loans for Florida homebuyers

By: FHA home loan Lender | 16/11/2009
certain FHA loan guidelines you must adhere to in order to be FHA approved for an FHA home Loan. You must collect all the necessary information and put it together in a file, and send it to the FHA mortgage underwriter. The FHA home loan underwriter is the rep for the FHA Lender who reviews your FHA loan request and determines if you are approved, denied, or suspended in FHA Home loan. You will also want to verify the FHA mortgage limits

Top Loan Modification Questions Answered

By: FreeDIYkits | 16/11/2009
The mortgage modification process can be very frustrating and complicating for homeowners who are not familiar with these programs. The first step a homeowner should take is to gather up as much information as possible.

How to Find Bank Owned Properties: Think Foreclosure

By: Eddie Harvey | 16/11/2009
Bank owned homes are often termed as REO homes which are the properties that belong under the direct control and ownership of the bank. Nowadays it has become quite possible to choose and select the right option of bank owned properties.

Why Mortgage Preapproval Pays

By: Ben Nicolas | 16/11/2009
Prequalifying for a mortgage is based on estimates and is not a guarantee that you can get a mortgage for a particular amount. When you are preapproved for a mortgage, you are guaranteed that the bank will cover you for a specific amount based on documentation of your income and expenses.

FHA mortgage Refinance Florida, 95% w NO MIN FICO

By: FHA home loan Lender | 16/11/2009
Some advantages of using a FHA mortgage for your next Florida mortgage refinance have more benifits then any other mortgage program.

To Refinance a Mortgage Learn About Obama's Mortgage Stimulus Plan Versus "Hope For Homeowners"

By: Brian Stephens | 16/11/2009
Obama has signed off on a new mortgage stimulus plan that should in theory give millions of homeowners the opportunity to refinance their mortgages at a lower rate with options to fix the mortgage at the new lower rate.

Home Refinance - Avoid Foreclosure Using the New Stimulus Package

By: Brian Stephens | 16/11/2009
The clear intention of Obama's new stimulus package for homeowners is to prevent foreclosure on their homes. People facing problems when it comes to meeting their mortgage repayments can apply for either a loan modification or mortgage refinancing option in order to avoid foreclosure on their primar

Quality Control Guidelines Summarized for Fannie Mae, Freddie Mac, and FHA

By: Mortgage Compliance Advisors | 16/11/2009
To help lenders understand agency requirements, Mortgage Compliance Advisors creates summary of Fannie Mae, Freddie Mac, and FHA quality control guidelines.

Hecm Reverse Mortgage

By: trinity reverse | 23/08/2007 | Mortgage
HECM Reverse Mortgage is perfect for senior citizens who do not want to pay for monthly installments but instead wants to get loan amount from the lenders.

Fannie Mae’s Reverse Mortgage

By: trinity reverse | 23/08/2007 | Mortgage
Nation’s largest investor Fannie Mae helps seniors to get Reverse Mortgage loans for refinancing their new homes wherein the seniors over the age of 62 gets loans amount from lenders and do not have to pay them back.

Countrywide Reverse Mortgage Loans

By: trinity reverse | 23/08/2007 | Mortgage
Countrywide lender helps senior citizens over 62 years of age to enjoy the Reverse Mortgage Loans which they receive in the form of one lump sums, monthly payments, periodic credit lines, or a combination and which the homeowners are not supposed to repay.

Fha Reverse Mortgage Lender

By: trinity reverse | 23/08/2007 | Mortgage
FHA Reverse Mortgage Lender are commonly know group which aids senior citizens over 62 years of age getting loans for refinance of the new homes wherein the seniors do not have to pay any installments to the lenders.

Reverse Mortgage Pros and Cons

By: trinity reverse | 23/08/2007 | Mortgage
Reverse Mortgage Pros and Cons showing more benefits for senior citizens over 62 years of age to enjoy their golden years without any monthly installments but instead getting monthly payments from lenders.

Reverse Mortgage Calculator

By: trinity reverse | 21/08/2007 | Mortgage
Reverse Mortgage Calculators are fast and convenient way for senior citizens who are interested in Reverse Mortgages and who are eligible for reverse Mortgages to determine the loan amount which they can receive from the lenders.

Wells Fargo Reverse Mortgage

By: trinity reverse | 21/08/2007 | Mortgage
A Wells Fargo Reverse Mortgage allows senior U.S. citizens who are 62 years and above to enjoy the new home without paying the regular mortgages but instead getting the loan amount.

Submit Your Articles Free: Signup
Article Categories




Use of this web site constitutes acceptance of the Terms Of Use and Privacy Policy | User published content is licensed under a Creative Commons License.
Copyright © 2005-2008 Free Articles by ArticlesBase.com, All rights reserved. (0.22, 1, w2)