How Does The Idaho Reverse Mortgage Loan Work?
The Idaho Reverse Mortgage is an FHA loan available to homeowners over the age of 62 years of age. If you plan on living in the home as your principal residence you can borrow against the equity of your home.
With a Reverse Mortgage you can typically select from five 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.
- A 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 – a combination of line of credit plus scheduled monthly payments for as long as you remain in the home.
- Modified Term – a combination of line of credit plus monthly payments for a fixed period of months selected by the borrower.
What Is A Reverse Mortgage In Boise, Idaho?
Idaho FHA Reverse Mortgage loans do not require any form of repayment as long as the home is your principal residence. Lenders recover their principal, plus interest when the home is sold. The remaining value of the home goes to you or your heirs.
One of the great things about an Idaho FHA Reverse Mortgage Loan is that you can never owe more than your home’s value. If you sell your home and the proceeds are not enough to pay the amount that is owed, then FHA will pay the lender the amount that is owed. FHA collects an insurance premium at closing from all borrowers to provide this coverage.
The amount you can borrow depends on your age, the current interest rate, other loan fees, and the appraised value of your home or FHA’s HECM mortgage limit for your area, whichever is less. Generally, the more valuable your home is, the older you are, and the lower the interest rate, the more you can borrow.
There are no asset or income limitations in order for you to be eligible for a HECM.
There are many Common Idaho FHA Reverse Mortgage questions along with the many myths pertaining to the loan. So I wanted to outline some of the most basic questions below:
What Are The Borrower Requirements For A Reverse Mortgage Loan?
– Be 62 years of age or older
– Own the property outright or have a small mortgage balance
– Occupy the property as your principal residence
– Not be delinquent on any federal debt
– You must participate in a consumer information session given by an approved HECM counselor
How Do I Know How Much Of A Mortgage I Qualify For?
– Mortgage amounts are based on:
– Age of the youngest borrower
– Current Interest rate
– Lesser of appraised value or the Idaho HECM FHA mortgage Limit
Do I Have To Have A Job Or Income To Qualify? What Are The Financial Requirements?
– No income or credit qualifications are required of the borrower
– No repayment as long as the property is your principal residence
– Closing costs may be financed in the mortgage
What Kind Of Properties Are Allowed?
– Single family home or 1-4 unit home with one unit occupied by the borrower
– HUD-approved condominium
– A manufactured home that meets FHA requirements
When Do I Have To Repay The Loan?
An Idaho HECM Reverse Mortgage must be repaid in full when you die or sell the home. The loan also becomes due and payable if:
– You do not pay property taxes or hazard insurance
– You permanently move to a new principal residence
– You, or the last borrower, fail to live in the home for 12 months in a row. An example of this situation would be if you (or the last borrower) were to have a 12-month or longer stay in a nursing home.
– You allow the property to deteriorate and do not make necessary repairs.
Reverse mortgages are loans offered to homeowners who are 62 or older who have equity in their homes. The loan programs allow borrowers to defer payment on the loans until they pass away, sell the home, or move out. Homeowners, however, remain responsible for the payment of taxes, insurance, maintenance, and other items. Nonpayment of these items can lead to a default under the loan terms and ultimate loss of the home. FHA insured reverse mortgages have an upfront and ongoing cost; ask your loan officer for details. These materials are not from, nor approved by HUD, FHA, or any governing agency.