Mostly when we talk about a reverse mortgage, we focus on the client, the mortgage company, the Federal Housing Authority (FHA) regulation, pros and cons of a reverse mortgage, who is eligible for a reverse mortgage, loan amounts and the reverse mortgage available in the market.
However, there is always one factor for eligibility for a reverse mortgage that is constantly overlooked. The property or home which can qualify for a reverse mortgage.
A home or property is the main factor in determining whether an individual will qualify for a reverse mortgage. For one, a home or property must adhere to the HUD mortgage standard and must have sufficient equity. The home or property must be your primary resident to receive reverse mortgage besides
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Family Homes
These include single-family and multi-family dwellings where the borrow occupies one unit as his main residence. However, second homes, vocational homes, and income producing properties do not qualify.
This is beside a farm or agricultural land which may or may not be eligible for a reverse mortgage.
Condominium
A majority of condos qualify for a reverse mortgage, however, there are others that still don't. Eligible condos must be confirmed and approved by the HUD and the FHA.
TownHomes
Townhouses qualify for a reverse mortgage. Townhouses are mostly a row of houses which are single-family dwellings.
Planned Units Developments (PUDs)
PUDs can be single-family homes or multi-family homes or both. They are built by developers with a common interest and include parks and recreational facilities and are eligible for a reverse mortgage.
Manufactured Homes
Manufactured homes are eligible for a reverse mortgage as long as they meet the set requirement of the FHA and are approved by the HUD. Manufactured homes they carry a lot of rules. Briefly, for a manufactured home to be eligible, it must be;
1. Constructed in 1976 or later
2. Built on their own lot and probably out in the
Collateral for the defaulted loan. Distressed real estate involves making a distressed purchase. According to Financial Crisis (2011), “[A] distressed purchase is whereby the property owners are usually in a foreclosure/short sale situation.” Foreclosure applies to a residential real estate loan in which a bank or creditor repossesses a home because of nonpayment. The institution will legally possess the right to resell the property as collateral for the defaulted loan. The selling price can be sold at a price equal to or greater than the original loan. The reason distressed properties can be bought at a lower price is the institution has already received a series of payments toward the original home loan. In many situations the lender can sell the house for a lower cost than the normal market value, leaving the buyer the opportunity to make a purchase at a lower selling price than market value and reselling the property at a profit (Demand Media, 2011).
"Home Owners Loan Corporation." Next New Deal. Roosevelt Institute, 2014. Web. 16 Mar. 2014. .
For the decades before the current housing crisis, buying homes and loaning money was a simple, but strict, affair and had had two outcomes. Either the borrower could pay back the money owed or they could not pay the money back. If the borrower could pay the money back, they could keep their house or whatever they took out the loan for. If they could not pay the money back, the lenders repossess the things that were not paid for. When this happens with a house, it is called foreclosure.
"Debate on Student Loan Debt Doesn 't Go Far Enough." Applebaum, Robert. Hill (2012). Print.
The U.S department of Housing and Urban Development (HUD) helps Americans find affordable housing. According to the text, the nation's public housing supply had diminished, and the government has yet to fund public housing since 1994. In addition to the dwindling of funds the federal government has not even recovered demolished homes. The housing Choice Voucher also known as section 8 is now the main approach to assisting very low-income families and individuals.
At the present time I am a first time home buyer going through the process. I can tell you
Lastly, the final FHA loan requirement involves your credit and guidelines you must fall within to meet the FHA qualifications. The FHA loan requirements scrutinize your credit history, as it can be a direct indicator if you will be a good borrower or not. As a good rule of thumb, if you currently have good credit and credit history, then you should not have to worry about this requirement. Contrary, if you have poor credit, or have many delinquent marks on your credit history, you may not qualify for a FHA loan.
Let us discuss the key monetary costs associated with home buying to stack up against your monthly rent check. Here are points to consider when deciding on buying versus renting.
Because of the high prices of homes in the United States, people often focus on only the buying price when considering the costs of owning a house, and neglect many other aspects of home ownership. A house is not your regular item that you buy and store or use for a limited amount of time. Houses come in a package with upkeep costs and taxes, and it’s wise to take these into account when analyzing your finances.
Efforts to confront this issue were initiated by affects of World War II. Before the war, the Great Depression devastated the United States of America causing production of homes to stop. World War II soon followed and the country switched into productions for war, which also caused a halt i...
There could be others that don’t exclude current homeowners. The first few months’ mortgage could be paid for, or furnished. President Obama is very intellectual and I think he has the capacity to make wise decisions and fix our foreclosure crisis.
Community Development Program: Affordable Housing Development. CommonBond Communities: Applying for CommonBond Affordable Housing. National Association of Realtors: A Field Guide to Low-Income Housing. Neighbor to Neighbor Organization: Affordable Housing Program.
Buying and owning your home is part of the American dream. Although the dream itself has since changed, the home still remains the main focal point. Today owning a home doesn’t necessarily mean a house. People now buy duplexes, cooperative apartments, and condominiums. For some families it could take up to a couple of generations before it’s able to have the capabilities of buying a home. To many people it means a certain achievement that only comes after years of hard work. It is a life altering decision and one of the most important someone can make in their lifetime. The reasons behind the actual purchase could vary. Before anything is done, people must understand that it’s an extraneous process and it is a long term project.
Buying a home is more complex then most think. A purchaser of a home doesn't pay in cash when buying a house. If that were so, then nobody would be able to afford one. A potential buyer must get a loan. The bank doesn't lend their money to just anybody, so there are prerequisites before a buyer should consider buying a home. The potential buyer must have enough money for a down payment which is 3% to 20% of purchase price, a steady job with for at least two years or more, must have a decent credit score with at least a 640 or better. That is standard for the market. (1) The credit score is based on the FICO score. FICO stands for, Fair Isaac Corporation, a company that has been in business since the early 1950's and monitors consumers' credit ratings and put a scoring system on it. (2) Conventional loans are usually financed up to eighty to ninety percent with a down payment required of ten to twenty percent. The potential buyer must also have a debt ratio not exceeding 28/39 of their income. The first number 28 refers to your new mortgage payment that cannot exceed 28% for your gross combined income and 39 refers to your mortgage payment plus revolving and installment debt as well as taxes and insurance cannot exceed 39% of you total combined gross income (3).
Home loans, or mortgages, use a borrower's home for collateral. This home can be a single-family house up to four-unit property, as well as condominium or cooperative unit. Lenders fund home loan, but both the lender themselves and broker who act on behalf of the lenders originate.