Bend OR Reverse Mortgage Loans
FHA Reverse Mortgages for Seniors in Bend OR (HECMs)
Is your income being stretched to thin? Has your mortgage payment become a financial burden? Want your peace of mind back? Have you lost money in retirement or other investments? For a long time no one in Bend understood what a Reverse Mortgage was. Nowadays, they are the talk of the town and fashionable as senior citizens are getting a mortgage loan without having monthly loan payment and if there’s proceeds acquired, they are tax-free. This is assisting numerous seniors handle life now!
Even so, Reverse Mortgages are generally specialized and require additional explanation by a loan officer with working experience. My wish is to deliver in-depth specifics, outlining the pros and cons with regards to all of the Reverse products, in order for everyone to determine if a reverse is the right choice. If possible, a face-to-face discussion (no obligation) is best. You deserve the time spent. I’ll provide information by mail or email. Again I stress, it is better fully understood in person. Your house is usually your most significant investment and I keep this front and center when I educate you.
Reverse Mortgages are good for many people in Bend Oregon, however they are in no way for everybody.
This may or may not be the right choice for you. Give me a call and we can assess your situation and needs. We can meet whenever and wherever you want (my office, your home, for your convenience). Nearly all details I’m able to supply you with over the phone, mail, FedEx, or E mail. And, once more, there certainly is no obligation, even if we have a face-to-face meeting!
If you’re a home-owner age 62 or older and have paid off your mortgage or paid down a considerable amount, and are currently residing in your home, you can participate in FHA’s Home Equity Conversion Mortgage (HECM) program. The HECM is FHA’s reverse mortgage loan program in Bend enables you to take out a percentage of your home’s equity.
You can even use a HECM to buy a primary residence if you are able to use cash on hand to pay for the difference between the HECM proceeds and the purchase price in addition to settlement costs for the house you are purchasing.
Here’s How The Reverse Mortgage Works in Bend
There are several factors to consider before deciding whether a HECM meets your requirements. To assist with this process, you will need to talk to a HECM counselor to discuss program eligibility standards, financial repercussions and other possibilities to obtaining a HECM and repaying the mortgage loan. Counselors will also speak about provisions for the mortgage becoming due and payable. Upon the conclusion of HECM counseling, you should be able to make an independent, knowledgeable decision of whether this product will satisfy your particular needs. Search online for a HECM counselor or call (800) 569-4287 toll-free.
There is borrower and real estate eligibility specifications that must be met. You may use the information below to see if you meet the criteria. Should you satisfy the eligibility requirements, you can complete a reverse mortgage application by contacting a FHA-approved loan provider in Bend OR. You can search online for a FHA sanctioned mortgage lender you can also ask the HECM counselor to provide you with a list for somebody in Bend. The mortgage provider will talk about additional specifications of the HECM program, including first year payment limits, various payment options, the home loan approval process, and repayment terms.
Bend Borrower Requirements
You must:
Be 62 years old or older
Own the property outright or paid down a considerable amount
Occupy the property as your principal residence
Not be past due on any federal debt
Have financial resources to continue for making timely payment of recurring property charges which include real estate taxes, insurance coverage and Homeowner Association fees, etc.
Participate in a consumer information session given by a HUD approved HECM counselor
Bend Property Requirements
The following eligible property types in CITY will need to fulfill all FHA property standards and flood requirements:
Single family home or 2-4 unit home with one unit occupied by the borrower
HUD approved condominium project
Manufactured home that meets FHA requirements
Bend OR Financial Guidelines For A Reverse Mortgage
Income, assets, monthly living expenses, and credit history are going to be verified.
Timely payment of real estate taxes, hazard and flood insurance premiums are going to be verified
For adjustable interest rate mortgages, you may select one of the following payment programs:
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 choosing until the line of credit is exhausted.
Modified Tenure – combination of line of credit and scheduled monthly payments for as long as you continue to live 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 get the Single Disbursement One time payment plan.
Reverse Mortgage Loan Amount Based On
The amount you may borrow would 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)
If there is more than one borrower and no eligible non-borrowing spouse, the age of the youngest borrower must be used to figure out the amount you can borrow.
Bend HECM Costs
You can pay for most of the costs of a HECM by financing them and having them paid from the proceeds of the loan. Financing the fees means there is no need to fund them out of your pocket. On the flip side, financing the fees lowers the net loan amount available to you.
The HECM loan in Bend comes with a number of charges and fees, which includes: 1) mortgage insurance premiums (initial and annual) 2) third party fees 3) origination fee 4) interest and 5) servicing fees. The loan originator will discuss which fees and charges are required.
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 span of the hecm, you will be charged an annual MIP that equals 0.5% of the outstanding home loan balance.
Mortgage Insurance Premium
You will incur a cost for FHA mortgage insurance. The mortgage insurance guarantees that you are given expected loan advances. You are able to finance the mortgage insurance premium (MIP) as part of your loan.
Third Party Charges
Settlement costs from 3rd parties consist of an appraisal, title search and insurance, surveys, inspections, recording fees, mortgage taxes, credit report checks and other fees.
Origination Fee
You likely pay an origination fee to pay the loan originator for handling your HECM loan. A lender may charge the higher 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 will be capped at $6,000.
Servicing Fee
Mortgage lenders or their agents in Bend provide servicing during the entire life of the HECM. Servicing includes mailing you account statements, disbursing loan proceeds and ensuring that you stay up with loan requirements such as paying real estate taxes and homeowner insurance premium. Mortgage companies may charge a regular monthly servicing fee of no more than $30 when the loan has an annually adjusting interest rate or has a fixed interest rate. The mortgage lender may impose a monthly servicing fee of not more than $35 if the rate adjusts monthly. At loan closing, the lender sets aside the servicing fee and deducts the charge out of your available funds. On a monthly basis the monthly servicing fee is added to your loan balance. Loan providers can also decide to include the servicing fee in the HECM interest rate.