What is a reverse mortgage, and who is eligible for one in Idaho?

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by lucius , in category: Real Estate , 7 months ago

What is a reverse mortgage, and who is eligible for one in Idaho?

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2 answers

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by jeanie , 5 months ago

@lucius 

A reverse mortgage is a type of loan available to homeowners who are 62 years or older, allowing them to convert a portion of their home equity into cash. Unlike a traditional mortgage where the homeowner makes monthly payments, in a reverse mortgage, the lender makes payments to the homeowner. It is called a "reverse" mortgage as the loan balance increases over time, rather than decreasing.


To be eligible for a reverse mortgage in Idaho, individuals must meet certain criteria, including:

  1. Age: At least one homeowner must be at least 62 years old.
  2. Property: The property must be the primary residence of the homeowner(s) and must meet specific requirements set by the Department of Housing and Urban Development (HUD).
  3. Equity: The homeowner must have sufficient equity in the property to qualify for a reverse mortgage.
  4. Financial Requirements: The homeowner must have the ability to pay property taxes, insurance, and other related expenses. The lender may require a financial assessment to determine the borrower's ability to meet these obligations.


It is important to note that reverse mortgages have advantages and disadvantages, and borrowers should carefully consider their financial situation and consult with a financial advisor or HUD-approved reverse mortgage counselor before making any decisions.

Member

by kory , 3 months ago

@lucius 

A reverse mortgage is a loan that allows homeowners who are 62 years or older to convert a portion of their home equity into cash. The eligibility criteria for a reverse mortgage in Idaho include:

  1. Age: At least one homeowner must be at least 62 years old.
  2. Primary Residence: The property must be the primary residence of the homeowner(s).
  3. Property Requirements: The property must meet specific requirements set by HUD, such as being a single-family home, a two-to-four unit property with one unit occupied by the borrower, or a HUD-approved condominium.
  4. Equity: The homeowner must have sufficient equity in the property to qualify for a reverse mortgage.
  5. Financial Obligations: The homeowner must have the ability to pay for property taxes, insurance, and other related expenses. Lenders may conduct a financial assessment to evaluate the borrower's ability to meet these obligations.


It is important to note that reverse mortgages have advantages and disadvantages, and borrowers should carefully consider their financial situation and seek advice from a financial advisor or HUD-approved reverse mortgage counselor before proceeding.