Are you living in Camarillo and thinking of an income source that can keep you living comfortably and spend any time you want at your old age? Think Reverse Mortgage in Camarillo. It is an ideal and a perfect way of earning during the sexagenarian and old age period. However, just like every other means of making money, a reverse mortgage requires an adequate understanding of what it entails.
What is Reverse Mortgage?
A Reverse Mortgage in Camarillo is an outstanding loan usually considered by a homeowner(s) that is 62 years of age and above. It allows them to fully utilize their homes’ value, which is credited to the homeowner in various pay-out options..
One of the unique attractions of a Camarillo reverse mortgage loan is that repayment is not required until either the homeowner(s) no longer live in the house. If the last surviving borrowers pass away or the loan terms are not adhered to, there is no need for loan repayment.
An example of Home Equity Conversion Mortgage guidelines involves paying property tax and insurance and maintaining the property according to the Federal Housing Administration (FHA) guidelines.
Types of Reverse Mortgage Camarillo
There are different types of a reverse mortgage in Camarillo. The two most popular are the:
- Home Equity Conversion Mortgage (HECM) or federally-insured reverse mortgages that are insured by the FHA.
- Proprietary Reverse Mortgages: they are private loans and backed up by the companies that develop them.
Another type is the Single Purpose Reverse Mortgage offered by some state and local governments and non-profit organizations. Before applying for a reverse mortgage loan, you must be made aware of the terms and conditions required for the loan through sources provided by your lender.
Generally, when you get a reverse mortgage in Camarillo of any type, you borrow against the equity in your home. You get to keep your home ownership, but instead of making monthly mortgage payments, you get an advance payment on your home equity part.
The money you received is not taxable and won’t affect your Social Security or Medicare benefits. When the last surviving borrower dies or someone else has bought the house, then it calls for loan repayment. In some situations, a non-borrowing spouse can still reside in the home.
Uses of Reverse Mortgages
You can use the proceeds gotten from reverse mortgages for anything. It can serve as a source of funds for:
- Payment of debts.
- Living expenses.
- Home improvements.
- Payment of college expenses.l
- Purchase of another home that better suits your needs.
Reverse Mortgage Home Eligibility
A home to be considered eligible for a reverse mortgage loan can either be a single-family home, a townhouse, or a two-to-four-unit property owner-occupied. A condominium needs to be FHA approved for it to be eligible for the HECM loan.
While the HECM is insured by the Federal Housing Administration and supervised by the FUD, private reverse mortgages are also closely monitored by regulators. Homeowners should research their various options to select one that best suits their needs. Whether it’s a HECM or reverse mortgage, both provide eligible homeowners with a flexible means to tap into their home’s value. Looking for the best reverse mortgage lender or a premier reverse mortgage company in Camarillo?Contact Revers Loan Solutions to speak with a loan counselor: 800-791-5626.