Posted on: 14th Jul, 2009 06:04 pm
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Eric1,
Thank you for sharing
But I am not sure it is good for seniors, since most of them have lost thier retirement money in the stock market bust, now FHA is askign offering them a way to loose thier house
Thats just my opinion
Thank you for sharing
But I am not sure it is good for seniors, since most of them have lost thier retirement money in the stock market bust, now FHA is askign offering them a way to loose thier house
Thats just my opinion
Hi,
It's a good news for the seniors. It's true many of the seniors have lost their hard-earned money in the stock market. But the program will no doubt help them save some money if they are planning to purchase a smaller home and take a reverse mortgage on it. They will not be required to pay the closing costs twice. This will surely help them financially. They are also not required to sell their existing homes. So, they have the opportunity to earn some extra money by renting the current homes.
But Eric, I have a few queries. Does one qualify for the HECM program if there's an existing mortgage on the current home? Does he need to pay off the mortgage with the reverse mortgage proceeds at the closing? Or can he continue making the mortgage payments with the monthly income from the reverse mortgage?
It's a good news for the seniors. It's true many of the seniors have lost their hard-earned money in the stock market. But the program will no doubt help them save some money if they are planning to purchase a smaller home and take a reverse mortgage on it. They will not be required to pay the closing costs twice. This will surely help them financially. They are also not required to sell their existing homes. So, they have the opportunity to earn some extra money by renting the current homes.
But Eric, I have a few queries. Does one qualify for the HECM program if there's an existing mortgage on the current home? Does he need to pay off the mortgage with the reverse mortgage proceeds at the closing? Or can he continue making the mortgage payments with the monthly income from the reverse mortgage?
>>They will not be required to pay the closing costs twice.
That statement is inaccurate. The homeowner will have to pay all closing costs again. The only benefit will be proration of FHA's mortgage insurance. That fee will be gravely reduced.
>>Does one qualify for the HECM program if there's an existing mortgage on the current home?
Yes
>>Does he need to pay off the mortgage with the reverse mortgage proceeds at the closing?
Yes
That statement is inaccurate. The homeowner will have to pay all closing costs again. The only benefit will be proration of FHA's mortgage insurance. That fee will be gravely reduced.
>>Does one qualify for the HECM program if there's an existing mortgage on the current home?
Yes
>>Does he need to pay off the mortgage with the reverse mortgage proceeds at the closing?
Yes
