For you to get a better understanding of what reverse mortgage is about, you have to know a little bit about their history. The very first reverse mortgage was given to Nellie Young in 1961. She was a widow from Portland, Maine who was on a cash crunch. Young met Nelson Haynes, who was employed by Deering Savings and Loan. Haynes helped Young get through her financial problems by designing a loan that is known today as a reverse mortgage. With this, Young managed to pay her bills while continuing to live in her home. It started as an act of kindness and eventually transformed into a financing option that changed the mortgage industry. Reverse mortgage loans allowed homeowners to convert the available equity of their property while staying in their homes.
The Home Equity Conversion Mortgage or HECM was established by the US government in 1989 through the HUD or the Department of Housing and Urban Development. By the financial year 2010, nearly 80,000 Americans got financial assistance through reverse mortgages. Seniors, to be more specific were able to use their home’s equity and became financially independent without having to make mortgage payments every month.
What Are The Qualifications?
The applicant must be at least 62 years old and living in the home as their main residence in order to qualify for a reverse mortgage. Homeowners are also required to get counseling from an agency that’s been approved by the HUD before they can apply for the mortgage, according to the FHA. In addition, there are several kinds of homes that may qualify for this unique mortgage. These include a single family home, a 1-4 unit townhouse or home, with one unit used by the borrower, a home that complies with the FHA guidelines and was built after July 1976, and an FHA-approved condominium.
You need to understand the different aspects of a reverse mortgage before you can determine if it is the right solution for you. If you are running short of cash and you want to use the equity in your home, then a reverse mortgage might just be the answer. Provided that the borrower keeps maintaining the home, pays its insurance and taxes, this might just be the right solution.
Reverse Mortgage Benefits
A reverse mortgage offers a lot of benefits. There’s no need to make loan repayments provided that you continue to live in your house and stay up to date on your homeowner’s insurance, real estate taxes, as well as home repairs. With a reverse mortgage, you do not need to make monthly payments on account that you continue to live in your home. The money that you receive through the loan can be used in any way you want and without any restrictions. In case you want to sell your home and move to another house, the proceeds of the sale will go towards the reverse mortgage fees and balance. Whatever is left will be returned to you.
Call South Carolina Reverse Mortgage Services now if you want to know more about reverse mortgage loans.
South Carolina Reverse Mortgage Services
Myrtle Beach, SC 29577
843-353-6071
http://screversemortgageservices.com/
South Carolina Reverse Mortgage Services
Charleston Office
Charleston, SC 29401
843-353-6071
http://screversemortgageservices.com/Charleston
Serving all of South Carolina.
SC Reverse Mortgage 