Reverse Mortgage

Salem OR Reverse Mortgage Loans

May 9, 2018 /

FHA Reverse Mortgages for Seniors in Salem Oregon (HECMs)

Feeling squeezed financially? Has your mortgage payment become a financial burden? Worried about the future and what sort of financial issues might pop up? Have you lost money in retirement or other investments? For a long time no one in Salem understood what a Reverse Mortgage was. Now, they are the talk of the town and fashionable as baby boomers are getting a home loan without having monthly loan payment and if there’s proceeds taken, they are tax-free. This is assisting countless seniors manage life now!

Nevertheless, Reverse Mortgages are generally specialized and will require an in depth explanation by a loan officer with expertise. My goal is to supply in-depth facts, explaining the advantages and disadvantages with regards to all the Reverse products, in order for each individual to determine if a reverse is the right option. Preferably, a face-to-face consultation (no obligation) is best. You deserve the time spent. I’m able to provide material by mail or email. Yet again I stress, it’s best grasped in person. Your home is normally your largest investment and I take this to heart while I educate you.

Salem reverse mortgage loansReverse Mortgages are fantastic for a number of people in Salem, however they are not for everyone.

Will this be the best option for you? Call me right now and let’s see if it is! I will meet you anywhere that you feel comfortable, within reason of course. Most details I can supply you with on the phone, mail, Fed Ex, or Email. And, again, there’s no obligation, even if we have a in person 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 presently 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 Salem makes it possible to pull out a percentage of your home’s equity.

You could also use a HECM to buy a primary residence if you’re able to use funds on hand to pay for the difference between the HECM proceeds and the purchase price in addition to closing costs for the house that you are purchasing.

How the Reverse Mortgage Works in Salem

There are lots of things to consider prior to determining whether a HECM meets your requirements. To aid in this process, you will need to meet with a HECM counselor to go over program eligibility guidelines, financial repercussions and alternatives to obtaining a HECM and paying back the mortgage. Counselors will also go over provisions for the mortgage becoming due and payable. After the conclusion of HECM counseling, you should be capable of making a completely independent, educated determination of whether the reverse mortgage will fulfill your particular needs. You can search online for a HECM counselor or call (800) 569-4287 toll-free.

There are homeowner and real eOregon property eligibility guidelines that have to be satisfied. You can use the lists below to see if you meet the criteria. Should you satisfy the eligibility standards, you can complete a reverse mortgage application by getting in contact with a FHA-approved mortgage company in Salem OR. You can search online for a FHA endorsed mortgage lender or you can ask the HECM counselor to provide you with a listing for someone in Salem. The mortgage lender will discuss other guidelines of the HECM program, for example 1st year payment restrictions, available payment options, the mortgage loan approval process, and repayment terms.

Salem Borrower Requirements To Qualify and Apply For A Reverse Mortgage Loan

You must:

  • Be 62 years of age or older
  • Own your property in full or paid-down a considerable amount
  • Occupy your property as your primary residence
  • Not be in arrears on any kind of federal debt
    Have financial resources to continue for making timely payment of recurring property expenses for example property taxes, homeowner insurance and Homeowner Association fees, etc.
  • Participate in a consumer information session given by a HUD approved HECM counselor

Salem Reverse Home Loan Property Requirements

The following eligible property types in Salem must meet all FHA property standards and flood requirements:

  • Single family home or 2-4 unit home with one unit occupied by the borrower
  • HUD / FHA approved condo project
  • Manufactured home that meets FHA guidelines

Salem ORFinancial Guidelines To Get A Reverse Mortgage

  • Income, assets, monthly cost of living, and credit history shall be verified.
  • Timely payment of real estate taxes, hazard and flood insurance charges are going to be verified

For adjustable interest rate mortgages, you can choose one of the following payment plans:

Tenure – equal monthly payments as long as 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 remain 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 receive the Single Disbursement One time payment plan.

Reverse Mortgage Loan Amounts in Salem Oregon Are Based On

The amount you may borrow depends 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 is used to ascertain the amount you are able to borrow.

Fees of A Reverse Mortgage in Salem Oregon

You can pay for almost all of the fees of a HECM by financing them and having them paid for from the proceeds of the loan. Financing the fees means that you do not have to pay for them out of your pocket. On the other hand, financing the costs decreases the net loan amount available to you.

The HECM loan in Salem comes with a number of fees and charges, which include: 1) mortgage insurance premiums (initial and annual) 2) 3rd party charges 3) origination fee 4) interest and 5) servicing fees. The loan originator will discuss which fees and charges are required.

You’ll 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 mortgage loan balance.

Mortgage Insurance Premium
You will incur a cost for FHA mortgage insurance. The mortgage insurance guarantees that you’re going to receive expected loan advances. You are able to finance the mortgage insurance premium (MIP) within your loan.

Third Party Charges
Closing costs from third parties consist of an appraisal, title search and insurance, surveys, inspections, recording fees, mortgage taxes, credit rating checks in addition to other fees.

Origination Fee
You will probably pay an origination fee to compensate the loan originator for handling your HECM home loan. A mortgage company 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 are limited to $6,000.

Servicing Fee
Loan companies or their agents in Salem provide servicing throughout the life of the HECM. Servicing encompasses sending you account statements, disbursing loan funds and ensuring that you stay up with loan conditions which includes paying property taxes and hazard insurance premium. Loan companies are allowed to impose a regular monthly servicing fee of no more than $30 when the loan has an annually adjusting rate or has a fixed interest rate. The lender may impose a monthly servicing fee of not more than $35 if the interest rate adjusts monthly. At loan closing, the lender sets aside the servicing fee and deducts the charge out of your funds available. Every month the monthly servicing fee is added to the loan balance. Lenders may also elect to include the servicing fee in the reverse mortgage interest rate.