Did you know that there are also reverse mortgages but only for the elderly population? Yes, apart from mortgage refinancing McAllen TX, and home lending, there is also reverse mortgage. This mortgage too offers a loan when your house is kept as security. The only difference between mortgage lending and reverse mortgage is that in the case of the latter, the loan is given on equity. Moreover, the amount is repaid only after the death of the owner or when the homeowner sells or moves out of the house. So let’s find out the three common types of reverse mortgages that older people can get.
Top Three Types Of Reverse Mortgages That You Need To Know If You Are Planning To Get One
• Home Equity Conversion Mortgages As The Most Common One
Home Equity Conversion Mortgages is the most common type of mortgage that you will come across in reverse mortgages. It helps borrowers to pull out the money in the form of equity for their homes. The best part about this mortgage is that there are no income requirements and anyone above 62 years can avail of it. Moreover, the money that borrowers get can be used for any purpose as per their requirements.
• Home Equity Conversion Mortgages For Purchase With Large Down Payment
Home Equity Conversion Mortgages For Purchases is another type of home mortgage that requires a large down payment. The down payment ranges between 40% and 50% in this case. Such mortgages are usually popular among older people who wish to stay in a less expensive home away from the city. In this case, too, the payment of the mortgage is made only when the homeowner dies or leaves the house.
• Proprietary Reverse Mortgages Without Government Insurance
Another type of mortgage is the reverse mortgage but without any government insurance. It is more like a private reverse mortgage but offers higher loan advances. Unlike HECMs, proprietary reverse mortgages have no limitation on the property value. They are used for houses whose value exceeds the usual appraised value in HECMs.
In this way, the above-mentioned are the three common reverse mortgages that one might come across. The best mortgage company will help you with all these reverse mortgages. Every home lender should have the option of reverse mortgages just like other mortgage lending types.
