What is a Reverse Mortgage Virginia Beach? A reverse mortgage works as the name says. Instead of you paying the bank each month for a mortgage, the bank pays you as long as you own the property. They are designed for homeowners who are 62 and older to help supplement their income. The home is required to have equity or cash value. The hhome is converted to equity and you don’t have to sell. A reverse mortgage has no impact on your social security or Medicaid. If you sell, you must pay the money back. There are other things you should know about What is a Reverse Mortgage in Virginia Beach.
What is Reverse Mortgage Virginia Beach consists of three types. The first type of reverse mortgage is the single purpose. You can call your local Department of Senior Services to find out if it is available. Just like the name says, these loans are used for a single purpose and designed for consumers with average or low income. Home Equity Conversion is a type of reverse mortgage funded by HUD or the Department of Housing and Urban Development. The cost upfront can be higher if you have plans to live at the residence a long time. You must also meet with a government approved counselor to discuss loan terms. A proprietary reverse mortgage is another type. These loans are funded by the lenders and not government insured. This means upfront costs can be high like the HECM. The most flexible loan is the HECM. It gives you the option of a cash advance or a line of credit. Other loans aren’t this flexible. A line of credit allows you to make withdrawals whenever you like. HECM permits you to use both options at once.
This should answer your questions about What is a Reverse Mortgage in Virginia Beach. Keep in mind there ate closing costs and other fees associated with reverse mortgages just like other loans. Consider the pros and cons before taking one of these loans. If you think it will be beneficial, start shopping for lenders.
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