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Springfield OR Reverse Mortgage Loans

May 10, 2018 /

FHA Reverse Mortgages for Seniors in Springfield OR (HECMs)

Is your income being stretched to thin? Has your mortgage payment become a financial burden? Does your future retirement have you stressed out? Have you lost money in retirement or other investments? For countless years no one in Springfield knew what a Reverse Mortgage was. Nowadays, they are the talk of the town and popular as senior citizens are getting a mortgage without having monthly house payment and of course if there’s proceeds acquired, they are tax-free. This fact is helping many seniors handle life now!

Nonetheless, Reverse Mortgages are complex and require an in depth explanation by a loan officer with practical experience. My desire is to deliver in-depth details, explaining the pros and cons about all the Reverse products, in order for everyone to decide if a reverse will be the right choice. If possible, a face-to-face meeting (no obligation) is ideal. You deserve the time spent. I’m able to give information by mail or email. Yet again I stress, it’s best comprehended in person. Your home is normally your most significant asset and I take that to heart when I educate you.

Reverse Mortgages are perfect for many people in Springfield, however they are not for everybody.

Is it perfect for you? Call me and let’s find out! We can meet wherever the most convenient place for you is, my office or your home. Nearly all details I can provide you with over the phone, mail, Fed-Ex, or E-mail. And, once again, there’s definitely no obligation, even if we have a face to face meeting!

If you’re a home-owner age 62 or older and have paid off your mortgage or paid down a considerable amount, and are presently living in the home, you can take part in FHA’s Home Equity Conversion Mortgage (HECM) program. The HECM is FHA’s reverse mortgage loan program in Springfield enables you to pull out a percentage of your home’s equity.

You may also utilize a HECM to buy a primary residence if you’re able to utilize cash on hand to pay the difference between the HECM proceeds and the sales price in addition to closing costs for the house you are buying.

How the Loan program Works in Springfield

There are numerous considerations before determining whether a HECM fits your needs. To help with this process, you must meet with a HECM counselor to discuss program eligibility specifications, financial implications and alternatives to obtaining a HECM and repaying the loan. Counselors will also discuss provisions for the mortgage becoming due and payable. After the conclusion of HECM counseling, you should be able to make a completely independent, informed determination of whether the product will satisfy your specific needs. You can search on the internet for a HECM counselor or dial (800) 569-4287 toll free.

There is borrower and residence eligibility requirements that have to be met. You may use the lists below to determine if you meet the requirements. Should you meet the eligibility standards, you can complete a reverse mortgage application by contacting a FHA-approved mortgage lender in Springfield OR. You can look online for a FHA approved lender or you can ask the HECM counselor to provide you with a listing for somebody in Springfield. The mortgage lender will talk about other requirements of the HECM program, including 1st year payment limits, various payment options, the HECM approval process, and repayment terms.

Springfield Borrower Requirements To Qualify and Apply For A Reverse Mortgage Loan

You must:

  • Be 62 years old or older
  • Own the property in full or paid-down a large amount
  • Occupy the property as your primary residence
  • Not be in arrears on any kind of federal debt
    Have financial resources to continue to make timely payment of ongoing property charges for example property taxes, insurance and Homeowner Association fees, etc.
  • Take part in a consumer information session delivered by a HUD approved HECM counselor

Springfield Reverse Home Loan Property Requirements

The following eligible property types in Springfield must satisfy all FHA property standards and flood requirements:

  • Single family home or 2-4 unit home with one unit occupied by the homeowner
  • HUD approved condo project
  • Manufactured home that meets FHA specifications

Springfield ORFinancial Requirements To Get A Reverse Mortgage

  • Income, assets, monthly cost of living, and credit history shall be verified.
  • Timely payment of real estate taxes, hazard and flood insurance charges are going to be verified

For adjustable rate mortgages, you may choose one of the following payment programs:

Tenure – equal monthly payments so long as at least one borrower lives and will continue to occupy the property as a principal residence.
Term – equal monthly payments for a fixed period of months selected.
Line of Credit – unscheduled payments or in installments, at times and in an amount of your choosing until the line of credit is depleted.
Modified Tenure – combination of line of credit and scheduled monthly payments for as long as you continue to live in the home.
Modified Term – combination of line of credit plus monthly payments for a fixed period of months selected by the borrower.

For fixed interest rate mortgages, you will get the Single Disbursement Lump Sum payment plan.

Reverse Mortgage Loan Amounts in Springfield Oregon Are Based On

The amount you may borrow depends on:

  • Age of the youngest borrower or eligible non-borrowing spouse
  • Current interest rate; and
  • Lesser of:
    appraised value; the HECM FHA mortgage limit of $679,650; or the sales price (only applicable to HECM for Purchase)

If there is more than one borrower and no eligible non-borrowing spouse, the age of the youngest borrower is used to find out the amount you can borrow.

Fees of A Reverse Mortgage Loan in Springfield Oregon

You can pay for almost all of the costs of a HECM by financing them and having them paid from the proceeds of the loan. Financing the expenses means you do not have to pay for them from your pocket. On the other hand, financing the expenses lowers the net loan amount accessible to you.

The HECM loan in Springfield comes with several fees and charges, which include: 1) mortgage insurance premiums (initial and annual) 2) 3rd party charges 3) origination fee 4) interest and 5) servicing fees. The mortgage lender will talk about which charges and fees are required.

You’ll be charged an initial mortgage insurance premium (MIP) at closing. The initial MIP will be 2% of the max claim amount. Over the lifespan of the home loan, you’ll be charged an annual MIP that equals 0.5% of the outstanding home loan balance.

Mortgage Insurance Premium
You will incur an expense for FHA mortgage insurance. The mortgage insurance guarantees that you’ll receive expected loan advances. You can finance the mortgage insurance premium (MIP) as part of your loan.

3rd Party Charges
Settlement costs from 3rd parties consist of an appraisal, title search and insurance, surveys, inspections, recording fees, mortgage taxes, credit rating checks as well as other fees.

Origination Fee
You will probably pay an origination fee to compensate the mortgage company for processing your HECM home loan. A mortgage company may charge the greater of $2,500 or 2% of the first $200,000 of your home’s value plus 1% of the amount over $200,000. HECM origination fees are limited to $6,000.

Servicing Fee
Mortgage lenders or their agents in Springfield provide servicing during the entire duration of the HECM. Servicing includes sending you account statements, disbursing loan proceeds and making sure that you keep up with loan guidelines such as paying property taxes and homeowner insurance premium. Mortgage lenders may charge a regular monthly servicing fee of no greater than $30 when the loan has an annually adjusting rate or has a fixed rate. The mortgage lender are allowed to charge a monthly servicing fee of a maximum of $35 if the interest rate adjusts monthly. At loan closing, the lender sets aside the servicing fee and deducts the charge out of your funds available. On a monthly basis the monthly servicing fee is added to your loan balance. Loan providers can also elect to include the servicing fee in the HECM interest rate.

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