Tag: qualify

How to Purchase a Home with Reverse Mortgage

Posted on by janjordan
Colorado Reverse Mortgage
Colorado Reverse Mortgage

There are many reasons a senior may want to purchase a new home versus staying in an existing home.  Possibly they want to move closer to town or to family, or eliminate stairs, or reduce size and upkeep.  As long as they are 62 years or over, the Reverse Mortgage for Purchase Program could be the right fit.  Regardless of the reason, many northern Colorado seniors have family in the Fort Collins areas, as well as Cheyenne and Laramie, Wyoming – and getting situated then staying put is important to them.

 

There are three ways to use a reverse mortgage to purchase a new home or even build a home to their own specifications.

 

Here’s a brief run down of how each works:


Option 1: Buy with cash, then utilize a Reverse Mortgage

 

This option is quite simple. Using cash the borrower has, they purchase a home or have a new home constructed.  Once the home is occupied they will utilize a reverse mortgage, allowing them to live mortgage payment free. In order to qualify for a reverse mortgage on a newly constructed home, the home owner must have the certificate of occupancy.  Often the homeowner will need to liquidate assets or tap into savings in order to purchase the home, but once the purchase or or new construction is completed they can then take out a reverse mortgage on the home, filling the reserve that was used to make the initial purchase, and live payment free.   A downside to this option – the homeowner would likely incur settlement and closing costs twice.

 

Option 2: Buy with a Reverse Mortgage

 

With the Reverse Mortgage for Purchase Program, a senior can sell their current home, purchase a new home, and obtain a loan for the new residence and a reverse mortgage at the same time with only one set of settlement fees.  And if a senior is not currently a homeowner but wants to be, the Reverse Mortgage for Purchase Program can help them purchase a home, even if they are a first time home buyer with limited income and credit. A downside to this option is that it cannot be used to construct a new home,  but can be used to purchase a newly constructed home that has never been lived in before.  The homeowner must also take residence in the home within 60 days of purchase.
When utilizing this program, seniors will need to have the means to pay the difference between the sale price of the new home and the maximum amount they can draw on the reverse mortgage, essentially requiring a down payment. Often this down payment comes from the sale of a previous residence.  But – the homeowner will live in their new home free of a mortgage payment.

 

Option 3: Take out a conventional loan on a new home then utilize a Reverse Mortgage

 

If a homeowner is looking to have a new home constructed to their own specifications, but doesn’t have the funding to buy with cash, this becomes an option.  Once the purchase or new construction is complete, the senior homeowners would be eligible for a reverse mortgage and can live payment free in this new home.  Downsides to this option include: the borrower would likely incur closing and settlement costs with each loan, and there would be income and credit limits as with any conventional home loan.

 

With any of these options, the homeowner will always retain the title to their home.  The Reverse Mortgage for Purchase program is backed by the FHA and is highly under-utilized.  Talk with a reputable lender to learn more or to have your questions answered.

 

Jan Jordan is a Reverse Mortgage Specialist serving the Fort Collins, Loveland, Greeley, and Front Range areas of Colorado as well as Cheyenne and Laramie, Wyoming.  Click here to contact Jan and learn if reverse mortgage is right for you.

How Reverse Mortgage Works in Fort Collins, CO

Posted on by janjordan

reverse mortgage colorado loveland fort collinsThe beautiful areas of Fort Collins and Loveland, Colorado are home to many retirees and seniors.  Year after year, this area makes news as one of the best places in the nation to retire.  Elderly adults stay active, family loves to come visit, and with over 300 days of sunshine per year, it’s hard to ever want to leave!

 

Now, imagine living in your home mortgage free, or enjoying monthly proceeds for life, both scenarios benefiting from the years you’ve invested in your home. A reverse mortgage is a unique tool designed for seniors 62 and older regardless of income or credit. You enjoy access to part of the equity in your home and the freedom and comfort of the home you’ve known for so many years. It’s your home, now you can put it to work for you.

Continue reading “How Reverse Mortgage Works in Fort Collins, CO” →

Frequently Asked Questions – Part 1

Posted on by janjordan

reverse mortgage colorado fort collins loveland

This is the first in a three part series of frequently asked questions about Reverse Mortgage.  Find Part 2 here and Part 3 here.  If you have questions that are not currently listed, please don’t hesitate to contact me directly.

 

Are There Any Special Requirements to Get a Reverse Mortgage?

 

In order to qualify for a reverse mortgage, you must own your home, be at least 62 years old, and have some equity in your home.  There are no income, credit, or medical requirements.

 

How Much Money Can I Get?

 

In general, the older you are (or the youngest borrower in the case of couples) and the more valuable your home, the more money you can get.  Other factors also come into play, such as: the appraised home value, interest rates, and the amount of equity in your home.

 

Does My Home Qualify?

 

Eligible properties include single-family homes, 2-4 unit properties, modular homes, condominiums, and townhouses.  This home must also be your primary residence.

 

What are My Payment Plan Options?

 

Funds from a reverse mortgage can be received all at once as a lump sum, as fixed monthly payments for a set term or for as long as you live in the home, as a line of credit which allows you to draw on the loan proceeds at any time, or a combination of all these.

 

How Can I Use the Proceeds from a Reverse Mortgage?

 

Their are no restrictions as to how the proceeds from a reverse mortgage can be used.  Whether it is to supplement retirement income, to cover your living expenses, to repair/modify your home, to pay for medical expenses, prevent foreclosure, pay off existing debts, or simply do something for nice yourself, no one can tell you how you must spend your money.

 

Jan Jordan is a Reverse Mortgage Specialist serving the Fort Collins, Loveland, Greeley, and Front Range areas of Colorado.  Click here to contact Jan and learn if reverse mortgage is right for you.

Your Reverse Mortgage Appraisal

Posted on by janjordan

 

If you are a senior 62 or older considering a reverse mortgage, a home appraisal by an FHA approved appraiser is required for every loan.  Once your reverse mortgage lender has received your application, the lender will contact an FHA appraiser.  The appraiser will then contact you to schedule a time that works for them to visit your home.

 

Here is what to expect from a reverse mortgage home appraisal:

 

The Inspection:
During the inspection, the appraiser will walk through your home with you.  It is not uncommon for the appraiser to take photographs of your home, primarily if there are specific features that may add to the value of the home or may be in need of repair.

 

The Research:
The appraiser will then begin to research various factors that will come into play, such as comparable home sales in your area.  The appraiser will review public records, multiple listing services, tax assessor’s records, and any other resources available to determine factors that will influence the value of your home.

 

The Appraisal Report:
After analyzing your home along with comparable home sales in your area, the appraiser will deliver the appraisal to be used with your loan request.  The report will contain all the information about your home, the comparable home sales that the appraiser used, and any photographs of your home.

 

Once the appraisal is completed your reverse mortgage lender will provide you with a copy of your report and update your reverse mortgage figures based on the appraised value.

 

There are some simple things that you or your loved ones can do BEFORE the appraiser arrives that can affect your value and prevent repeated visits by the appraiser.

 

For example, look for and repair the following if possible:

 

Do you have any chipping or peeling paint inside or outside the home?
Do you have any exposed electrical wires?
Do you have any current or past water leaks that have not been treated?
Do you have any decks or staircases without hand rails?
Does your roof have any issues with leaking or dose it show excessive wear?

 

If home repairs are required for a reverse mortgage, they can sometimes be completed after closing on the loan, using the proceeds from the reverse mortgage, thus eliminating the outgoing cost for seniors.  Ask your reverse mortgage lender for more information about this option.

 

Jan Jordan is a Reverse Mortgage Specialist serving the Fort Collins, Loveland, Greeley, and Front Range areas of Colorado.  Click here to contact Jan and learn if reverse mortgage is right for you. 

 

 

Reverse Mortgage Tips for Married Couples

Posted on by janjordan
Married Couple and their Reverse Mortgage

 

It’s not uncommon to hear heartbreaking stories of reverse mortgages that left a spouse in dire straits after the other spouse passed away.  How could this happen?  Is it something that you need to worry about?  If you and your spouse are considering obtaining a reverse mortgage, it’s important to understand the long term effect it could have on either spouse once the other passes away and feel confident any appropriate protections are in place.

 

What Married Couples Need to Know 

 

When applying for a reverse mortgage the amount of money you can receive is calculated according to the age of the youngest borrower.  The older the borrower, the more money is available from the lender.

 

If both homeowners are over the age of 62, both homeowners can be on a reverse mortgage loan.  If both spouses are on the loan, the loan continues if either passes away.  If only one spouse is on the reverse mortgage loan when the borrower passes, the loan is due and the home will transfer to the estate.  At this time the heirs will have the option to pay off the existing loan, sell the home, or obtain a conventional loan.  Occasionally this is not a concern if the amount of life insurance is anticipated to be enough to pay off the loan after the borrower dies or another plan has been put in place.

 
Another scenario to consider is if a borrower obtains a reverse mortgage and then remarries.  If this was to happen after the age of 62, it wouldn’t be unheard of for the married couple to live in the home for 20 or more years before the borrower passes.  At this time the new spouse would not be protected under the existing reverse mortgage loan and the loan would be due.  You could consider looking into refinancing the reverse mortgage and adding the new spouse to the loan.

 
And yet one more thing to note is the possibility one spouse needs to move out of the home into an assisted living facility due to health concerns.  If this happens, as long as the spouse that remains in the home is on the loan, they can continue under their current reverse mortgage.

 

Bottom line: If you are married and are considering obtaining a reverse mortgage, it is extremely important to work with a trusted and experienced reverse mortgage specialist who can easily answer all of your questions and address any concerns you may have.  Making sure both spouses are protected should be a lender’s top priority.

 
Jan Jordan is a Reverse Mortgage Specialist serving the Fort Collins, Loveland, Greeley, and Front Range areas of Colorado.  Click here to contact Jan and learn if reverse mortgage is right for you. 

Reverse Mortgage and Retirement Financial Planning

Posted on by janjordan
Reverse Mortgage Colorado Financial Planning
Reverse Mortgage and Financial Planners

 

When financial planners counsel retirees on how to best leverage their retirement, social security, and assets, considering a reverse mortgage is often not part of that conversation – but this is beginning to change.

 

As the myths of the industry are laid to rest, many professionals are beginning to better understand how reverse mortgage can be used as a financial planning tool for seniors on a strict budget.  These reverse mortgages can often mean the difference between getting by and living life.

 

In a recent Reverse Mortgage Daily article financial planner, Dr. John Salter, discusses his experience in studying the ins and outs of  reverse mortgages – and eventually understanding why they should be part of the conversation.  Dr. Salter holds seminars for other financial planners and says reverse mortgage is always a hot topic.  He expresses the need to alleviate misnomers in the industry and for his colleagues to re-learn everything they once thought they knew.

 

A few tips for financial planners:

  • Seek out and work with a reputable reverse mortgage specialist who has strong ties to the community, lends from an organization that is a member of the Better Business Bureau, and is associated with the National Reverse Mortgage Lenders Association.
  • Make sure you fully understand the information you may be offering your retiree client.  With the amount of misinformation within the industry, if you are not 100% sure of an answer, call your trusted reverse mortgage specialist to ensure the information you are providing is accurate.
  • Communicate with adult children who may have concerns and make sure they fully understand the process from A to Z.  Eliminating misinformation is key.
  • Remember, reverse mortgages are not one-size-fits-all.  Be creative and comprehensive when considering adding a reverse mortgage to a long term retirement plan.  And don’t hesitate to contact a reputable reverse mortgage specialist if you are on the fence.

 

Jan Jordan is a Reverse Mortgage Specialist serving the Fort Collins, Loveland, Greeley, and Front Range areas of Colorado.  Click here to contact Jan and learn if reverse mortgage is right for you. 

 

 

 

 

What Happens to a Reverse Mortgage After the Owners Pass?

Posted on by janjordan
What Will Happen To My Home?

 

A common question and concern surrounding reverse mortgage is what will happen to the home after the homeowners pass?  Will the bank take possession?  Will it be allowed as inheritance?  Will it be possible to keep the home in the family?

 
These are very valid concerns – so I’d like to offer some clear and concise guidance.

 

When the last homeowner passes, whether we’re talking about you or a loved one, the home will transfer into the estate or a specific person according  to the wishes expressed in the homeowner’s will.  At this time there are three main options:

 

1.  Pay off the remainder of the loan

 

Depending on the amount of equity that still exists in the home, the financial situation of the family, and just the overall ability of those involved, this may or may not be a feasible option.

 

2. Obtain a conventional loan.

 

Many mortgage brokers are familiar with the reverse mortgage process and the right broker will be able to help those in need identify the best route in obtaining a conventional loan and keeping the home.

 

3. Sell the home

 

The final option is to sell the home.  When there is not a desire to keep the home, the heirs can sell the home.

 

One last note, as long as the communication lines remain open, the bank will typically allow up to one year to help with the transition.  This one year is allotted in three month increments.

 

Jan Jordan is a Reverse Mortgage Specialist serving the Fort Collins, Loveland, Greeley, and Front Range areas of Colorado.  Click here to contact Jan and learn if reverse mortgage is right for you. 

 

Understanding a Reverse Mortgage

Posted on by janjordan
Do I Qualify?

Are you wondering if you or someone you love may qualify for a reverse mortgage and how the process works?  Here are some fast facts to help. Reverse mortgages are available to many homeowners and retirees looking to make a lifestyle change.

 
Do I qualify?

  • Age 62 or older
  • The home you own must be your primary residence
  • Have enough equity in the home to pay off existing mortgage (if applicable)

How much money can I receive?

  • The older you are the more money you can receive with the calculation is based on the age of the youngest borrower
  • The amount you can receive is based partly on the appraised value of your home
  • The current interest rate will also be a factor in the amount of money you can receive with interest rates changing weekly

How do I receive the money?

  • Fixed monthly payments
  • Lump sum payment
  • Line of credit
  • A combination of the options above

Jan Jordan is a Reverse Mortgage Specialist serving the Fort Collins, Loveland, Greeley, Longmont, Boulder and other Front Range areas of Colorado, as well as the Cheyenne and Laramie communities of Wyoming.  Contact Jan and learn if reverse mortgage is right for you.