Reverse mortgage is a loan for seniors especially the seniors aged 62 years. The cash gained is the cash generated from home equity conversion from home that seniors occupy. Therefore, there is no monthly payment made by borrowers (seniors), but in reverse, the seniors will receive monthly cash from the lenders. However, reverse mortgage is a kind of loan so there will be an obligation of repayment. At conventional mortgage, the homeowner is obliged to make monthly payments until the end of the mortgage term, and then the home will be released by the lender. Unlike at conventional mortgage, at reverse mortgage, the obligation of repayment will be deferred until the homeowner dies and or the home is sold, or due to an acceptable reason, the homeowner leaves.
The reverse mortgage eligibility requires two factors, borrower and property, to meet the qualifications. For borrower, at least, he or she must be no less than 62 years old and he or she must occupy the home as his or her primary residence. For the property, a borrower must own a few types of property that are eligible for reverse mortgage loan. The types of property that are eligible for reverse mortgage loan may vary based on the states. So, you can find out what types of property will be eligible for reverse mortgage loan in your state. However, in general, all eligible property types are the same in every state but by certain considerations such as the condition of the property and the condition of the area.
Anyway, regardless of eligibility factors on reverse mortgage loan, the reverse mortgage calculator has the standard factors that have followed regulations by Federal Housing Administration. You can use it to know how eligible your senior is and to find the best reverse mortgage deals.
To calculate how eligible a senior is to apply the reverse mortgage loan, the Federal Housing Administration has designed a system, namely reverse mortgage calculator, which is based on the age of borrower or homeowner or senior and the home property value. For the best reverse mortgage deals, before applying for a reverse mortgage, consulting to your financial advisor or professional is needed. Or, you also can use the online reverse mortgage calculator tool that is provided here by and at AllRMC.com. Through the reverse mortgage calculator, you can compare and determine the eligibility of your senior before you really take a reverse mortgage loan.
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