Types of reverse morgage
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The purpose of reverse morgage is to create a steady income for seniors from the equity by a lender.
There are tree types of reverse morgages.
- Single Purpose Reverse Morgage is dedicated for people with income, to help them to pay for things related with property like taxes, repairs or improvements.
- Home Equity Conversion Morgage (HECM) is known as federally-insured reverse morgage. This loan is similar to Single Purpose but is dedictaed for people interested in many purpose use. Is much costly than Single Purpose, is backed by the Federal Housing Administration and before applying for, require meeting with a counselor.
- Proprietary is similar to the HECM - is pricier than the Single Purpose, and there are the same guidelines in determining amount and criteria of qualification. It differ from HECM because don’t require any meetings with a counselor.
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