What is an Idaho Reverse Mortgage ?
An Idaho Reverse Mortgage, also known as a HECM (Home Equity Conversion Mortgage), is a loan made to a person age 62 or older. There are no income, credit or health requirements associated with the loan.
The amazing thing about the Idaho Reverse Mortgage is that you can take out a lump sum payment (tax free) to yourself or you can have a monthly payment sent to you (tax free) every month or you can have a line of credit set up for when you need it.
All of these things without having to make a monthly payment for the rest of the time you occupy the property as your primary residence for as long as you live.
So you are probably wondering how does the Idaho Reverse Mortgage Loan Work? Below I have outlined the different payment options that are available to as a borrower to receive.
1. Tenure – equal monthly payments as long as at least one borrower lives and continues to occupy the property as a principal residence.
2. Term – equal monthly payments for a fixed period of months selected.
3. Line of Credit – unscheduled payments or in installments, at times and in an amount of your choosing until the line of credit is exhausted.
4. Modified Tenure – combination of line of credit plus scheduled monthly payments for as long as you remain in the home.
5. Modified Term – combination of line of credit plus monthly payments for a fixed period of months selected by the borrower.
Idaho Reverse Mortgage HECM loans does not require any form of repayment as long as the home is your principle residence. Lenders recover their principal, plus interest, when the home is sold. The remaining value of the home goes to you or your heirs.
One of the great things about an Idaho FHA Reverse Mortgage Loan is that you can never owe more than your home’s value. If you sale your home and the proceeds are not enough to pay the amount that is owed, then FHA will pay the lender the amount that is owed. FHA collects an insurance premium at closing from all borrowers to provide this coverage.
The amount you can borrow depends on your age, the current interest rate, other loan fees, and the appraised value of your home or FHA’s HECM mortgage limit for your area, whichever is less. Generally, the more valuable your home is, the older you are, and the lower the interest rate, the more you can borrow.
There are no assett or income limitations in order for you to be eligible for a HECM.
If you or anyone you know has any questions about the Idaho FHA Reverse Mortgage feel free to contact me.
Q: What are the Borrower Requirements for an Idaho (HECM) Loan ?
– Be 62 years of age or older
– Own the property outright or have a small mortgage balance
– Occupy the property as your principal residence
– Not be delinquent on any federal debt
– You must participate in a consumer information session given by an approved HECM counselor
Q: How do I know how much of a mortgage I qualify for?
Mortgage amounts are based on:
– Age of the youngest borrower
– Current Interest rate
– Lesser of appraised value or the Idaho HECM FHA mortgage Limit
Q: Do I have to have a job or income to qualify? What are the financial requirements?
– No income or credit qualifications are required of the borrower
– No repayment as long as the property is your principal residence
– Closing costs may be financed in the mortgage
Q: What kind of properties are allowed?
– Single family home or 1-4 unit home with one unit occupied by the borrower
– HUD-approved condominium
– Manufactured home that meets FHA requirements
Q: When do I have to Repay the loan?
A: An Idaho HECM Reverse Mortgage must be repaid in full when you die or sell the home. The loan also becomes due and payable if:
– You do not pay property taxes or hazard insurance
– You permanently move to a new principal residence
– You, or the last borrower, fail to live in the home for 12 months in a row. An example of this situation would be if you (or the last borrower) were to have a 12-month or longer stay in a nursing home.
– You allow the property to deteriorate and do not make necessary repairs.
If you or anyone you know could benefit from an Reverse Mortgage loan please feel free to contact us with questions.