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Your Reverse Home Loan

A reverse mortgage allows you to take cash out of the equity you have built up in your home. Seniors who are low on cash but have a lot of equity built up in their home can take advantage of thier reverse mortgage benefits.

Reverse Mortgages

Reverse Mortgage Resources

There are a variety of benefits to a reverse mortgage. Currently, to qualify for a reverse mortgage you must be over 62 years old.

VA Loans and Reverse Mortgages

Reverse Mortgage Help from GetLoaned.com

The Department of Veterans Affairs has many benefit programs, including the VA Home Loan Guarantee Program. However, in the case of a reverse mortgage you already own your home and want to take cash out of the equity. The VA offers their Home Loan Guarantee Program in order to assist veterans in purchasing a home, and since with a reverse mortgage you already own your home, the VA does not have a program for this. Even with the Home Loan Guarantee Program, the VA only guarantees a percentage of the loan, they do not lend you the money directly. So in order to get a reverse mortgage you will need to go to a lender.

Even though the VA does not directly offer reverse mortgage loans, another government agency offers the best current terms on reverse mortgage loans. Through HUD you can get a reverse mortgage called a Home Equity Conversion Mortgage, or HECM, with favorable terms and low interest rates depending on your situation. You can also get a reverse mortgage from most traditional mortgage lenders, but make sure you look at HUD reverse mortgages along with other lenders so that you can get the best loan terms possible.

Some of the requirements you need to qualify for a HUD reverse mortgage include:

  • You (and your spouse if married) must be 62 years or older.
  • You must own your home. If you still owe a small balance on your home mortgage HUD will allow you to pay off the balance with the proceeds from your reverse mortgage. However, if you owe a large balance you probably will not be eligible for a reverse mortgage.
  • You must be the primary resident of your home.
  • You must go through HECM counseling. The FHA and HUD require consumer counseling so that you will be well informed of all of the details of the loan you are considering. This way you can make a well-informed decision.