Reverse Mortgages – Good or Bad?
Lately there has been a lot of negative publicity on Reverse Mortgages, most recently an article by the NY Times talking about how dangerous they are. But are they really as bad and dangerous as the media has made them out to be? To answer this question, we need to first take a look at what is being reported as SO BAD! Once we do that, we can talk about the REALITY of Reverse Mortgages. The NY Time article spoke of how...
Common Uses For The Reverse Mortgage
A Reverse Mortgage unknown to many, can be used by anyone for any reason. As long as you own your home, have adequate equity and are of at least the healthy age of 62 or better, you may be able to qualify for a Reverse Mortgage. There is nothing that says what you are or are not allowed to spend the money on. Pay bills, by a car, spoil your grandkids, fix up the house or even take up underwater basket...
Common Misconceptions About Reverse Mortgages
Reverse Mortgages have been around for longer than most people realize. They were around before Reagan was president. It was from this PRE Reagan era, where MOST of the misconceptions about the Reverse Mortgage come from. If you are like many folks, you have heard THINGS about the Reverse Mortgage that may or may not be truthful. The most important thing to remember, is the US Government now insures and regulates Reverse Mortgages making them one of the most regulated and...
Home Loan Basics – Income Qualifying
When it comes time to qualify for a home loan, first and foremost your lender is going to going to ask you to document your income. One of the terms you will undoubtably hear from your lender is Debt to Income Ratio, or DTI. Your debt to income ratio is the percentage of your documentable gross monthly income that is allowed to be used for your credit and housing expenses. The loan amount you qualify hinges on this ratio. Documenting Income W2...
Debt to Income Ratio too High? Auto Loan Solution
Your debt to income ratio is what determines how much you qualify for when applying for a home loan. If you find yourself butting up against the ceiling of your DTI (debt to income), you might not want to give up yet. Reducing Debt The debt portion of a debt to income ratio is what is reported on your credit report. Being as familiar as I am with credit reporting, I know that there's a good chance that it's not completely 100% accurate. check...
How do I qualify for a Reverse Mortgage?
Qualifying for a Reverse Mortgage is easier than one may think. It's not like qualifying for a traditional mortgage, mainly because credit and income are not factors. For the most part, the following criteria needs to be met in order to qualify for a Reverse Mortgage. Qualification Factors for a Reverse Mortgage Borrowers on Title must be age 62 or older Home must be used as your Primary Residence Home can be a Single Family Detached Residence, FHA Approved Condominium or Townhome, PUD, Multi Family...
Can I buy a home using a Reverse Mortgage?
With much invigoration, the answer is a resounding YES! Most folks don't realize that if you are age 62 years of age or older, you can use a Reverse Mortgage to actually purchase a new home. That's right. They aren't just for people who need to supplement their retirement or expenses. How do you buy with a Reverse Mortgage? Simply put, if you have a substantial down payment, or you are selling one house to buy another you may be able to pay for...
What is a Reverse Mortgage and How Does it Work?
A Reverse Mortgage (or HECM, Home Equity Conversion Mortgage), is a Government Insured LOAN backed by FHA, given based on the equity of a persons home. If you qualify, the equity in your home can be used to pay off an existing mortgage and/or provide available cash for whatever purpose you choose. Money received from a Reverse Mortgage is TAX FREE! It will not affect your Medicare or Social Security Benefits. It can however, affect State Government Assistance, so be sure...
Using CalHFA CHDAP? Expect Delays if Lender is Inexperienced
The California Homebuyers Downpayment Assistance Program (CHDAP) is an amazing first time buyer program offered by the State. The program provides 3% of the purchase price to be used for either down payment or closing cost assistance. We have written extensively about this program and I still think it's one of the best programs out there for first time buyers. It is often said that Real Estate Agents and home sellers discriminate about home buyers that are using down payment assistance. I think the...
FHA Streamline Refinance Cost Reduction – June 11th 2012
A streamline refinance on a FHA mortgage is incredibly easy to do. With nothing more than your mortgage statement and homeowners insurance paperwork in hand, you can drop the interest rate on your current FHA home mortgage to today's historically low rates. There is a catch though - You have to have at least a 5% reduction in payment to qualify. The challenge this presents is that while interest rates continue to plummet, mortgage insurance premiums have increased for FHA insured mortgages. This leaves...
