If you're a senior, 62 years of age or older, let a reverse mortgage loan solve your cash flow problems. You also need to have equity in your home. By meeting these two minimum requirements, you may be able to qualify for a loan that could make your senior years far less financially challenging. The loan disbursement could be received in a lump sum, monthly payments, a credit line or all three forms of payment in the time frame you choose.
If a couple age 66 and 70 were to seek a reverse mortgage loan of their $750,000 home in Meraux LA, with a remaining balance of $200,000, this is an example of the type of money they would be able to pull from their equity in the home. These numbers reflect what the home owners requested: a lump sum and a credit line. Sun Mortgage Funding may offer slightly different numbers, but they will not vary significantly, because of consistency of reverse mortgage standards across the country. The balance of $200,000 would be paid off first. The remaining lump sum of 34.903 would be paid directly to the home owners. A credit line would also be opened for 87,000 that the home owners could access at their convenience. They would not receive monthly payments unless they had requested them.
A reverse mortgage could be seen as a senior assistance loan, because only seniors can qualify for a reverse mortgage. It could also be seen as mortgage assistance because seniors often use the money disbursed from the loan to pay the mortgage balance, ending their monthly mortgage payments and increasing their available funds. This loan is never repaid in the traditional manner a long as the homeowners continue to reside in the property. The agreement is only jeopardized if the homeowner lives outside of the residence for more than 365 days consecutively. The homeowner's obligation ends when one or all of the parties that assumed the loan are deceased or when they decide to sell the property and pay off the reverse mortgage. In death, the property passes on to the decease's heirs who must pay off the mortgage or sell the property and pay off the mortgage.
The reverse mortgage is just a mortgage on the property that puts cash in the hands of seniors instead of the hands of lenders. Payments are not ever made on the loan and the property can be passed on to the heirs of the homeowners. In short, a Sun Mortgage Funding reverse mortgage could solve the financial woes of your elderly loved ones and should be considered by a homeowner 62 years of age or older.