Manufacture Homes Single Wide, Double Wide, Triple Wide
There are certain criteria that a manufactured home must meet in order to qualify for an FHA-insured loan on a manufactured home. These criteria include:
The manufactured home must be a HUD home, which means that it must be manufactured after June 15, 1976
The axles and tongues must be removed from the chassis.
The manufactured home must have a floor area of not less than 400 square feet.
The manufactured home must be built and remain on a permanent foundation.This can be done at closing for about $1500.00
The manufactored home must NOT be in a flood zone
The manufactured home must be in original location.DON`T MOVE A USED HOME ON A LOT ..you must buy a used home on original location
Learn more by reading any of our free guides. Click the text links below to download a virus-free PDF.
Refinancing your Reverse Mortgage with another New Reverse Mortgage
The normal upfront Mortgage Insurance Premium (MIP) on a HECM is 2.0% of the maximum claim amount (the lesser of the home's value or the County's lending limit). If a HECM is being refinanced, HUD gives a credit for the upfront MIP paid on the existing loan. For example, if the existing loan's claim amount was $150,000, its original upfront MIP was $3,000. If the new loan's claim amount is $200,000, normally upfront MIP would be $4,000, but, after the $3,000 credit from the existing loan, the new loan's upfront MIP is reduced to $1,000.
According to Mortgagee Letter 2004-18, HUD will allow a borrower to opt out of the HECM Housing Counseling Requirement if all three of the following conditions are met:
The borrower has received the required HUD Anti-Churning Disclosure form (see below),
The increase in the borrower 's principal limit exceeds the total cost of the refinancing by an amount equal to five times the cost of the transaction, and
The time span between the closing date of the original HECM that is to be refinanced and the application date for the new HECM does not exceed five years, even if less than five years have passed since a previous refinancing.
To do a HECM refi, your client needs to obtain the following information about the current (existing) HECM from its servicer: the original maximum claim amount, current principal limit, and current payoff amount (balance due). Enter this information below and click on [Refi Estimate]. This will take you to an estimate of the new HECM loan, and then an Anti-Churning Disclosure.
Member National Aging In Place Council
The National Aging in Place Council is dedicated to increasing seniors’ standards of living by providing educational resources and implementing public policies. Its members include an exclusive group of professionals from a wide array of industries.
Origination fees of 2% on the initial $200,000 in maximum claim amount and 1% on the balance thereafter with a cap of $6,000
Prohibitions on requiring the purchase of annuities and other financial products.
Restrictions around cross selling financial products.
Requirements on counseling protocols, funding and practices that promote independence and quality in counseling.
This will give seniors more cash!!!
For example: Seniors with home values of $417,000 can now receive more in cash depending on age (before under old law) their homes would be limited to the county limit of 200,000 or 244,000 or 295,000 or 344,000
7 Myths of Reverse Mortgages
1. I would be selling my house to the bank FALSE .You keep the title to your house. The lender will add a lien on the property but you will still have complete control over it.
2. My heirs won't inherit anything
FALSE Your estate only owes the balance on the reverse mortgage. The balance is however much you've spent and interest.
Let's say you got a reverse mortgage and owed $50,000 after 5 years. Then you decided to sell the house for $250,000. The lender gets $50,000 and you get $200,000.
3. I might "outlive" the loan
FALSE FHA/HUD reverse mortgages are designed specifically so that you can't outlive the loan. When you get the reverse mortgage, the lender will charge you 2% to purchase mandatory FHA mortgage insurance. That insurance guarantees that even if you live to be 100, you can never owe more than the value of your home and you can never be forced to leave.
4. I could get forced out of my home
FALSE FHA/HUD reverse mortgages specifically state that you can not be forced out of your home.
5. Social Security and Medicare will be affected
FALSE Money from a reverse mortgage is not considered income because it is a loan. For this reason, a reverse mortgage does not lower Social Security and Medicare benefits.
6. I would have to pay taxes on the reverse mortgage
FALSE You already paid taxes on the money when you were putting the equity into your home. When you take it out again, it is not taxable.
7. There are big out-of-pocket expenses
FALSE All of the costs, whether closing costs or interest, are financed. That means there are never out-of-pocket expenses at any point in the reverse mortgage.
What Is A Reverse Mortgage?
Reverse Mortgage:
This is an equity loan that allows you to access the equity in your home and receive a lump sum, a tax-free monthly income and/or a credit line. This Loan is backed up by a major financial institution or by the U.S. Government.
What are the qualifications for a Reverse Mortgage?
It’s easy to get A Reverse Mortgage, allowing that:
a) You need to be at least 62 or older
b) Your home is occupied as the primary residence
c) You have equity in your home
This is not like a common home equity loan. The equity is built into your home so there is no need to prove your future earning ability to repay the loan.
No monthly loan payment is required. The loan payoff and payment is deferred until a future date.
Your home does not need to be free of debt, a conventional mortgage can often be reversed.
What can I do with the money?
You can use the money any way you can think of. Your home is like a savings account waiting to be used. Here are some examples of what you could do with the money:
a) Home improvements or construction
b) Pay off current mortgage, reverse it, quit paying house payments
c) Medical expenses
d) Tax free monthly income
e) Gifting to children or charity
f) Debt repayment, pay off credit cards, grandchildren’s college expenses
g) New car
h) Travel, take the grandchildren
There are endless opportunities and possibilities. The funds are yours to use as you wish.
How Much Money Can I Receive?
Depending on your age and the market value of your home is how the maximum amount of money that you can receive is decided.
What is an Eligibility Certificate?
You must first meet with an independent counselor before applying for the FHA of Fannie Mae reverse mortgage. During the free counseling conference, you will receive help in determining your financial needs and if a reverse mortgage is appropriate for you. Family members and close friends are encouraged to come with you. You will obtain an eligibility certificate at the end of the meeting.
This program requires full disclosure and total examination of all factors. Make certain the reverse mortgage is for you and accomplishes your goals. Often these counseling sessions can be done over the telephone.
Do I Repay The Loan?
Reverse mortgages do not call for monthly or annual debt activity, but each loan needs to be repaid in some form. No payment is made until the home is either sold either by the mortgage holder or the heirs of the mortgage holder. If at a future date you decide to relocate, the home is sold and the mortgage is paid off.
You are not signing your home over to the government. All that can ever be attached is the original mortgage plus any accumulated interest.
How Do I Get The Money?
There are 4 basic payment selections to choose from with a reverse mortgage:
a) Term Option: Obtain equal monthly payments for a set period of time that you choose such as 5, 10, or 20 years.
b) Tenure Option: For as long as you inhabit your home as your primary residence you will obtain equal monthly payments.
c) Line Of Credit Option: You select the amount of cash and the times to withdraw your maximum amount of cash that includes all of your approved money up front in cash.
d) Cash: Lump sum distribution.
Options exist to make changes in you payment choice.
How is interest determined on a Reverse Mortgage?
The reverse mortgage interest is adjustable and is fastened to a market index. When the loan closes the initial rate is set and adapts monthly or yearly. You will not be charged any interest on currencies that have been approved but not yet withdrawn and interest changes will not affect your monthly payments.
What costs are involved with a Reverse Mortgage?
Reverse mortgage loans are just like a regular mortgage loan. The costs of reverse mortgage include:
a) mandatory appraisal
b) title insurance
c) loan origination
d) escrow fees
e) recording fees
These conventional loan costs can be enclosed in your loan account usually with no money out of pocket. A reverse mortgage loan officer can provide you with a complete list of all costs and expenses.
Do I Need Mortgage Insurance?
Mortgage insurance guarantees that your equity is secured for your future use and that you can never owe more than the value of your home. Mortgage insurance is to protect you. If your home’s value is less than the loan balance when you no longer occupy your home you or your heirs will not be responsible for repayment of the mortgage. If your loan balance is greater than the value of your home, the mortgage insurance will make up the difference that is guaranteed.
There is never any liability in the event the loan value will exceed the value of your home. This protects you and your heirs from a future debt that is greater than the value of your home.
What About My Spouse and Children?
If your spouse is a legal co-owner of your house they can keep on living in the house if they wish. Until your spouse passed away or they decided to move the repayment would not be required. There may be equity saved for inheritance depending on how much money you borrow and for how long you participate in the program.
How a Reverse Mortgage Works
Home Owner and Permanent Residence
Borrowing
a) You must either own your home or pay off any outstanding loan balances with proceeds from reverse mortgage.
b) Your home does not have to be paid for to qualify for a reverse mortgage. The existing mortgage would simply be "reversed."
c) The borrower obtains a loan as a lump sum, line of credit, or sporadic payments. A combination of payment methods are allowed by some programs.
d) The borrower will stay owner of the house and will continue making payments for property taxes, insurance, and repairs.
Repayment
a) The borrower is not required to repay as long as the house is the borrowers primary residence. b) When the last borrower sells the house, permanently moves away or passes away that is when repayment is due.
c) Typically a loan is repaid when you sell the house or by refinancing the loan.
d) When it is time for the loan to be repaid a borrower can never owe more than the value of the house.
e) The borrower or heirs will receive the difference if the proceeds from the sale of the house are greater than the loan amount due.
THE PROS AND CONS OF REVERSE MORTGAGES
There are several different reasons why a reverse mortgage may not be suitable. A) No Need: The financial needs during retirement are already met so most retired individuals do not want to consider a reverse mortgage.
B) Security: Once a home is paid for many people are not comfortable with putting any kind of mortgage on the home. That demonstrates long held attitudes toward savings and debt.
C) Heirs: A home owner may want the equity in the home to be given to family members, other beneficiaries, or a charity, instead of being used for on going needs.
There are also many situations where a reverse mortgage can be helpful.
A) Stress Reduction: The extra money set up by a reverse mortgage can make it easy to pay of everyday expenses.
B) Debt Reduction: The finances from the reverse mortgage can be use to pay off personal debt such as credit card balances.
C) Independence: Many individuals will make improvements to the house or pay for in home care in order to keep the independence as long as they can.
D) Future Needs: A reverse mortgage is a way to meet any unforeseen circumstances that come your way in the future, even if your financial situation is steady.
SEEK PROFESSIONAL ADVICE
Reverse mortgages are new so they may be unfamiliar; the individuals that are considering a reverse mortgage are at a point where long term commitments are carefully
Social Security, Medicare and Medicaid - Proceeds from reverse mortgages will not affect your parents' Social Security or Medicare benefits because those benefits are not based on the assets of the recipient. However, in the federal Supplemental Security Income program, beneficiaries must keep their liquid resources under certain limits. If you do not spend loan advances in the month received, then such funds are considered part of your liquid resources and may adversely affect your eligibility for SSI. Regulations vary for state-administered programs such as Medicaid, Aid for Dependent Children (AFDC), and food stamps. Therefore, we suggest that you consult a benefits specialist at your local area Agency on Aging or the local offices for these programs to determine how HECM payments may affect your particular situation.
IF ON SSI HOMEOWNER SHOULD NOT LEAVE MORE THAN $2000 IN BANK SO THEY SHOULD NOT GET LUMP SUM .HOMEOWNER SHOULD RECEIVE ONLY WANT THEY NEED AND SPEND IT EACH MONTH ON EXPENSES.
This is an equity loan that allows you to access the equity in your home and receive a lump sum, a tax-free monthly income and/or a credit line. This Loan is backed up by a major financial institution or by the U.S. Government. 