Live Well Financial: Buying a Home with Reverse Mortgage

Published: 17th August 2009
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This type of mortgage is ideal for seniors. This is used to free the home equity of the real estate as either one lump sum payment or stream payments. The homeowner can make his house as collateral for a loan, which he is free from paying anything in the agreement. The mortgage is delayed when the property owners die, leave the property to go to home for the elderly and when the property is sold.

There are a lot of homeowners who are eligible for a reverse mortgage that see such program is only for credit restructuring purposes only. But they do not have any idea that they can use this to buy a new house. They can make it possible by getting a lump sum payment that has similar amount to the remaining balance of forward mortgage. If they have more financial resources, they can even pay the house in full. After that, they can use the reverse mortgage to aid them compensate the expenses they incurred when they purchase the property in cash. Lending institutions like Live Well Financial can provide you a better explanation regarding this program. Such company focuses on this kind of financial assistance to aspiring homeowners.

As what was stated earlier, this type of financial assistance is available to seniors only. He must be at least 62 years old. Applicant must also possess a property. If the property has still some existing loan balance, it must be low enough to be cleared out during the settlement. He needs to stay in that house also. It is required that he obtains consumer information. This is given by a certified counselor from the HECM before releasing the loan. He can quickly look for eligible HUD counseling agencies through the internet. These agents normally provide free service or have low professional fee.

Live Well Financial lending company is strict when it comes to the requirements of this program. It is said that not all houses are qualified for this type of mortgage. It needs to be a single family house. The condos that are HUD approved or manufactured can be eligible. The amount that a loan applicant can get from reverse mortgage varies, age is considered to be the primary determinant. The amount will also rely on the latest interest rate as well as the value appraised for the house. Hence, it is wise to avail the free consultation of Live Well Financial to be properly oriented before applying for reverse mortgage.

Receiving the payments may vary too. You can have it in tenure. You can get monthly payments. But you have to be sure that at least one of the borrowers is still staying and he will continue to live in that house. You can also opt to receive it through terms. This implies that you receive payment at a particular period of months. You can also have it by line of credit. This has no pre-determined time. You can receive the amounts you hoped at your preferred time until the credit is exhausted. You can also have through modified tenure. This provides you monthly payment with the combination of line or credit as long as you continue to stay in that house. Lastly, you can opt for a modified term. This is the same with the modified tenure but with a specified period.

Live Well Financial lending company has truly helped seniors who are property rich but do not have enough financial resources to use. Through this program, they can live more peacefully and improve their lifestyle.

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