What is Reverse Mortgage?
Reverse Mortgage is a kind of home loan that is only available to homeowners who are 62 and up. The borrower uses the equity in his or her home as security and the loan will only be due when the borrower no longer lives there or not using it as a primary residence.
Who can qualify for a reverse mortgage?
Reverse Mortgage in Florida is only available to individuals who are 62 years and older, own their homes or those with low mortgage balance that can be covered at the closing with the loan proceeds and must live in the home and consider it as a primary residence.
How is the loan received?
The amount borrowed can either be received as a lump sum, a monthly payment, a line of credit or a combination of any two or all three.
Will the home ownership be changed?
No, it will not. You will still own your home and hold the title all throughout the life of your reverse mortgage. You can remodel, repaint or treat your home the same way that you do if you didn’t have the reverse mortgage.
What are the responsibilities of the borrower?
When you take advantage of reverse mortgage in Florida, there are certain conditions that you need to abide by and this include living in your home for at least 6 months every year, continue paying your property taxes and homeowner’s insurance and making sure you maintain your home properly.
What types of homes in Florida are allowed when applying for Reverse Mortgage?
Your home must be a single family unit or a multifamily with no more than four units. Other homes that are eligible for reverse mortgages upon meeting additional requirements are townhouses, condominiums, manufactured homes, detached homes or homes in planned unit development (PUD).
How much loan can I get from Reverse Mortgage?
The amount of your loan will be determined by your age, the value of your home upon appraisal and the current interest rate. In most cases, you will be granted a bigger amount if you are older, your home value is greater and the interest rate is lower.
When is reverse mortgage due?
There are several instances when you need to pay back your reverse mortgage. These include the following:
- When all of the borrowers of the loan have died.
- When all of the borrowers no longer use the home.
- When the borrowers decline to comply or pay their property taxes, home insurance or any other obligations they have.
- When the borrowers decide to move permanently to a different primary address.
- When the borrowers didn’t live in their home for 12 months in a row or is staying someplace for most of the year.
- When the borrowers are not maintaining the property, allow it to deteriorate and do not make necessary repairs.
How is the loan paid back in the end?
The loan from your reverse mortgage can be paid back either by refinancing it with a new mortgage loan or by selling the property.