How to get a reverse mortgage loan in Florida.
The most common loan for those over age 62 is quickly becoming the HECM or reverse mortgage loan. Some call it a reverse loan for short, but the technical term is definitely a Home Equity Conversion Mortgage or HECM.
This loan has gone through many changes over the years but unlike most government based programs this has gotten better for seniors instead of worse. Why? Well, they (HUD) has really made the laws and changes needed to protect seniors from the pitfalls this product once had.
As an example: Lets say you were 68 and you spouse 61. Back in the day, you would get the mortgage in your name only to maximize your cash flow as a 68 year old will get higher proceeds than a 61 year old. Actually, the 61 does not qualify but for simplicity, we won’t get in to that. Then, the unthinkable happens you hit 78, and die. Given you were the only person on that loan, the loan is due and payable but your spouse now 71 does not have the means or equity to repay it…. what does he/she do? Well, this was a issue but now this issue is no longer. HUD realized this was causing issues or surprises to seniors and made a new ruling. This ruling states both spouses have to be 62 or older if they occupy the home together and they both must be on the loan. This protects the spouse who lives longer to be able to stay in the home should the other die before them.
The beauty in a reverse mortgage is you never have to leave your home and can stay there until you die or choose to sell it. Of course, you must keep your taxes and insurance current while keeping the house in good repair but what senior doesn’t do this? The rules on this product continually change as HUD takes more and more measures to protect our seniors.
Often times government intervention is a bad thing. However, so far all the changes I have seen have been to protect the long-term interest of the seniors. I think this is a good thing. I hope this article has enlightened you regarding the reverse mortgage product. More importantly, I hope it has provided you with an extra measure of assurance that this product is safe and reliable for you and the ones you love.
Always feel free to visit my page at www.sarasotareverse.com where you’ll find up to date videos and tips and tricks to help you understand reverse mortgages.