FLORIDA REVERSE MORTGAGE LOANS
A Good Plan For Many Seniors
Florida reverse mortgage loans can be used by many seniors to purchase their primary residence in Florida.Most people are aware of the reverse mortgage concept that allows senior citizens to turn the equity in their home into cash or an income stream and eliminate their house payments. Fewer people are aware, however, that the same concept can be used by seniors to buy a new home. The Purchase Reverse Mortgage Program allows seniors who are 62 and older to buy a new home and never have to make monthly mortgage payments for as long as they live in the home. A federal law that took effect in January 2009 requires that the Federal Housing Administration (FHA) is required to insure reverse mortgage loans to be used for purchasing homes. In 2009, this meant that a senior who wanted to buy a new home could do so even if he or she had bad credit and low income. The only thing that senior needed is to have some cash. This was the case in 2009, but as of 2011 some lenders are starting to look at credit ratings as well. A traditional reverse mortgage loan is intended to allow seniors to receive a steady income from their home equity. It gives seniors a chance to stay in their present home and get some steady income. Many seniors have done this with their Florida retirement homes. Some seniors, however, would like to get out of their present home and move elsewhere. Maybe their home is too big, or too far from friends and family. Maybe they'd like to move to one of the many Florida retirement communities. With the Purchase Reverse Mortgage Loan Program, they do not have to come up with money for the full price of the new home. They also don't have to make monthly mortgage payments as long as they live in the home. They still have to pay taxes on the new home, buy homeowner's insurance, and take care of the maintenance of the house. If you are a senior and would like to know if you qualify for this program or for a traditional reverse mortgage, contact your local bank. Some banks still provide this service, although the biggest - MetLife Home Loan - stopped writing these loans on April 26, 2012.
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