Reverse MortgageYou’ve been to a few Christmas parties and you’ve heard about the many amazing opportunities that a reverse mortgage has to offer. You’ve listened to your friends brag about being able to stay in their home, getting access to a part of their home equity, and having a flexible payment scheme. This picked your curiosity plus the fact that thousands of US homeowners apply for reverse mortgage loans every year. Are you thinking if this is the best option for you? If the answer is yes, then read on. We’ve provided a list of key areas that you need to consider when making a decision whether or not procuring a reverse mortgage in 2018 is the best option for you.

Reverse Mortgage: A Brief Explanation

A reverse mortgage is different from a standard loan. You can apply for this kind of loan if you want to get some cash out of your residential property. It does not need monthly payments. Plus, the fees and interest rates are included in your loan balance every month. As time passes, your home equity will be decreased while your loan balance increases.

Are You Eligible?

There are three specific criteria that you need to meet if you want to be eligible for a reverse mortgage loan. You have to be 62 years old or older since this kind of loan is meant for people who are nearing their retirement. Next, you have to pay any existing mortgages or liens in full using the reverse mortgage. However, there is an exception. Per the U.S. Department of Housing and Urban Development, you are allowed to have a minimal mortgage balance provided that it can be settled at closing using the proceeds from the reverse mortgage. Lastly, this kind of loan applies to specific types of properties like single family homes, townhouses, certified condos, and multi-dwelling units. Furthermore, if you wish to get a reverse mortgage, you also have to attend one counseling session with an agency that has been approved by the HUD. You need to do this before you complete a loan application.

What Are Your Responsibilities?

In case you are eligible for a reverse mortgage Myrtle Beach, you should follow some guidelines. You need to live in your home and you cannot rent it out. Your property taxes must be updated and you have to make sure that your home is insured. Lastly, your home needs to constantly meet the property standards set by the Federal Housing Administration.

How About The Payments?

Once the loan process is completed, your lender will ask you how you want to get your payments. The Department of Housing and Development said that you can choose from a few options. You may get equal monthly payments provided that you live and occupy the property as your principal residence. You will get monthly payments for a certain number of months. You may get unscheduled payments or perhaps in installments in the amount that you choose until the credit limit has been reached. You may also opt for a line of credit as well as scheduled monthly payments as long as you continue to live in the house. Lastly, you may choose a mix of monthly payments for a fixed time period and line of credit.

Call South Carolina Reverse Mortgage Services if you wish to know more and find out which option is best for you.

South Carolina Reverse Mortgage Services
Myrtle Beach, SC 29577

South Carolina Reverse Mortgage Services
Charleston Office
Charleston, SC 29401

Serving all of South Carolina.