Florida Reverse Mortgage
Florida has experienced a real estate boom in the last 10 years owing to its coastal location and fabulous weather. Miami, Fort Lauderdale and the Key West areas have been all time favourites for both regular families and individuals to the rich and the famous. Owning real estate in Florida has been for a long time been associated with prestige. As with other states, seniors in Florida can also take advantage of reverse mortgage deals to take care of uncertain social security payments, declining pensions and rising medical costs. Florida Reverse Mortgages have gained in popularity since the US Department of Housing and Urban Development (HUD) created the program. A reverse mortgage offers many seniors citizens a safer and more guaranteed way regarding their financial history because they are federally insured. This because a reverse mortgage is a special kind of home loan that lets a senior citizen borrow against the equity in his or her home and withdraw it either in lump sum, monthly payments or as a line of credit. There are several similarities between Florida reverse mortgages and other traditional mortgage loans in that there are closing costs and loan origination costs associated with the loan. The loan proceeds can be used for home improvement, to supplement social security income, meet unexpected medical expenses,and even pay for travel. There are really no restrictions on how to spend the income that comes from a Florida reverse mortgage.
The whole idea of a reverse mortgage stems from the simple rule that a home accumulates equity over years. A homeowner who is 62 years or more and who is in need of immediate spendable cash can apply for a personal loan against this equity and be paid either in lump sum or in monthly payments and no repayment is required as long as the borrower(s) is in their home as their principal residence.
Is a reverse mortgage for you? In Florida, one can qualify for a HUD reverse mortgage, the Federal Housing Administration (FHA) if he or she can prove they have attained at least 62 years of age. They must also own the home free and clear and must live in the home as their primary residence. The FHA further mandates that a borrower attend financial counseling classes before being approved for a reverse mortgage. By contacting the FHA on their 800 number, borrowers wishing to obtain a reverse mortgage in Florida can then be directed to a local counseling center. In Florida, the counseling ensures that the borrower fully understands the ramifications of the loan including laws and by-laws. This counseling is free.
One great advantage of a reverse mortgage in Florida is that the applicant need not have an FHA-insured mortgage. In Florida, once a borrower has been approved for a reverse mortgage, the reverse mortgage will itself be federally-insured!
Most single-family homes or dwellings or a two-to-four unit property in Florida qualify for a reverse mortgage. The borrower must show that they intend to use that property as their primary residence. In Florida on the other hand, mobile homes, townhouses, detached homes, units in condominiums and some manufactured homes are ineligible unless by special loan arrangement.
