Woodburn Oregon Reverse Mortgage Loans
FHA Reverse Mortgages for Seniors in Woodburn Oregon (HECMs)
Is your income being stretched to thin? Feeling crushed by your mortgage payment? Want your peace of mind back? Have you had a financial loss such as losing money in the stock market, loss of income or retirement accounts being exhausted? For a long time no one in Woodburn understood what a Reverse Mortgage was. Nowadays, they are the talk of the town and popular as seniors are getting a mortgage loan and no monthly payment and of course if there is proceeds acquired, they are tax free. This key fact is assisting numerous seniors manage life now!
Nonetheless, Reverse Mortgages are complicated and require additional explanation by a loan officer with practical experience. My objective is to supply in-depth facts, presenting the pros and cons about all the Reverse products, in order for everyone to determine if a reverse is the right opportunity. Preferably, a face to face meeting (no obligation) is best. You deserve the time spent. I can give material by mail or email. Again I stress, it is better understood in person. Your house is normally your most significant investment and I take this to heart while I educate you.
Reverse Mortgages are good for many individuals in Woodburn, however they are in no way for everyone.
Could this be the options you have been looking for? Give me a call and we can assess your situation and needs. We can meet wherever the most convenient place for you is, my office or your home. Nearly all information I’m able to provide you with over the phone, mail, Fed-Ex, or E mail. And, once again, there’s definitely no obligation, even if we have a face-to-face meeting!
If you’re a homeowner age 62 or older and have paid off your mortgage or paid down a large amount, and are currently residing in your home, you can take part in FHA’s Home Equity Conversion Mortgage (HECM) program. The HECM is FHA’s reverse mortgage program in Woodburn makes it possible to pull out a percentage of your home’s equity.
It’s also possible to use a HECM to buy a principal residence if you’re able to use funds on hand to pay the difference between the HECM proceeds and the purchase price in addition to settlement costs for the property you’re buying.
Here’s How The Program Works
There are numerous considerations before determining whether a HECM meets your requirements. To help with this process, you will need to talk to a HECM counselor to talk about program eligibility requirements, financial implications and alternatives to getting a HECM and repaying the loan. Counselors will also discuss circumstances for the mortgage becoming due and payable. Upon the conclusion of HECM counseling, you will be capable of making an independent, informed determination of whether the reverse mortgage will fulfill your specific requirements. Search on the internet for a HECM counselor or dial (800) 569-4287 toll-free.
There are homeowner and property eligibility guidelines that have to be satisfied. You can use the information below to find out whether you meet the requirements. Should you meet the eligibility requirements, you can complete a reverse mortgage application by getting in touch with a FHA-approved financial institution in Woodburn OR. You can search the internet for a FHA sanctioned mortgage company or you can ask the HECM counselor to provide you with a list for someone in Woodburn. The mortgage provider will discuss additional guidelines of the HECM program, such as first year payment restrictions, available payment options, the home loan approval process, and repayment terms.
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Woodburn Borrower Requirements
You must:
Be 62 years old or older
Own your property in full or paid-down a large amount
Occupy the house as your primary residence
Not be delinquent on any federal debt
Have financial resources to continue for making timely payment of recurring property expenses for example real estate taxes, insurance and Homeowner Association fees, etc.
Participate in a consumer information session given by a HUD approved HECM counselor
Woodburn Property Requirements
The following eligible property types in Woodburn are required to meet all FHA property standards and flood requirements:
Single family home or 2-4 unit home with one unit occupied by the homeowner
HUD approved condo project
Manufactured home that meets FHA requirements
Woodburn OR Financial Requirements To Get A Reverse Mortgage
Income, assets, monthly cost of living, and credit history shall be verified.
Timely payment of real estate taxes, hazard and flood insurance charges are going to be verified
For adjustable interest rate mortgages, you can choose one of the following payment options:
Tenure – equal monthly payments provided that at least one borrower lives and continues to occupy the property as a principal residence.
Term – equal monthly payments for a fixed period of months selected.
Line of Credit – unscheduled payments or in installments, at times and in an amount of your choice up until line of credit is exhausted.
Modified Tenure – combination of line of credit and scheduled monthly payments for as long as you remain in the home.
Modified Term – combination of line of credit plus monthly payments for a fixed period of months selected by the borrower.
For fixed rate mortgages, you will receive the Single Disbursement Lump Sum payment plan.
Reverse Mortgage Loan Amount Based On
The amount you may borrow will depend on:
Age of the youngest borrower or eligible non-borrowing spouse
Current rate of interest; and
Lesser of:
appraised value;
the HECM FHA mortgage limit of $679,650; or
the sales price (only applicable to HECM for Purchase)
Should there be more than one borrower and no eligible non-borrowing spouse, the age of the youngest borrower must be used to find out the amount you’re able to borrow.
HECM Fees
You can pay for almost all of the costs of a HECM by financing them and having them paid for from the proceeds of the loan. Financing the expenses means there is no need to cover them out of your pocket. On the other hand, financing the expenses decreases the net loan amount accessible to you.
The HECM loan in Woodburn comes with several charges and fees, such as: 1) mortgage insurance premiums (initial and annual) 2) 3rd party charges 3) origination fee 4) interest and 5) servicing fees. The mortgage company will discuss which charges and fees are obligatory.
You will be charged an initial mortgage insurance premium (MIP) at closing. The initial MIP will be 2% of the max claim amount. Over the life of the hecm, you’ll be charged an annual MIP that equals 0.5% of the outstanding mortgage loan balance.
Mortgage Insurance Premium
You will incur a cost for FHA mortgage insurance. The mortgage insurance guarantees that you get expected loan advances. You’re able to finance the mortgage insurance premium (MIP) as part of your loan.
Third Party Charges
Settlement costs from third parties consist of an appraisal, title search and insurance, surveys, inspections, recording fees, mortgage taxes, credit checks as well as other fees.
Origination Fee
You will probably pay an origination fee to compensate the lender for processing your HECM reverse loan. A lender can charge the greater of $2,500 or 2% of the first $200,000 of your home’s value plus 1% of the amount over $200,000. HECM origination fees are limited to $6,000.
Servicing Fee
Mortgage companies or their agents in Woodburn provide servicing throughout the life of the HECM. Servicing involves mailing you account statements, dispersing loan funds and making certain that you keep up with loan requirements including paying real estate taxes and hazard insurance premium. Mortgage lenders are allowed to impose a monthly servicing fee of no greater than $30 if the loan has an annually adjusting interest rate or has a fixed rate. The mortgage company may charge a monthly servicing fee of no more than $35 if the rate adjusts monthly. At loan closing, the lender sets aside the servicing fee and deducts the charge from your funds available. Every month the monthly servicing fee is added to your loan balance. Lenders may additionally decide to include the servicing fee in the mortgage interest rate.