Naples Reverse Mortgage
Naples Reverse mortgage specialists at Core Mortgage Financial have extensive expertise in the Home Equity Conversion Mortgage (known as HECM).
Reverse mortgages are designed for seniors over the age of 62 and seeking to pull equity out of their existing home or purchase money transactions. NO monthly payment is required and the payment obligation is deferred until the home owners is no longer living. The borrower is required to pay their own taxes and insurance as the lender will not set up an escrow account. One distinct advantage is credit, income and in refinance transactions assets are not a factor in qualifying for a reverse mortgage.
The first type of Naples reverse mortgage is the standard refinance program. The borrower can elect to take a lump sum payment or use a line of credit loan.The line of credit you only pay interest on the monies used almost like a checkbook. The lump sum payment is where the borrower gets the full amount at closing. You can also elect to have monthly payment option where you get a monthly payment almost like an income check.
The purchase money transaction is where the buyer uses a reverse mortgage to purchase a home. The amount required for down payment is calculated by the zip code of the property being purchased and the date of birth of the homeowner.
The normal calculation is 40-50% down payment. We review date of birth and zip code to establish the exact love to value ratio. It does vary so please make sure to contact Core Mortgage Financial HECM specialists for the exact amount.
The program had considerable changes in 2017 whereas we now need to review if you have the ability to pay property taxes and home owners insurance since you don't have a monthly mortgage payment. This new analysis is called LISA. Which means "loan expectancy set aside". If you income does not cover the basic annual costs the lender could require a escrow /reserve account set aside to make a few years payments. The changes last year were due to the FHA losses that happened from borrowers being foreclosed due to not being able to pay property taxes and insurance.
The underwriter will take the income and assets into consideration while making a decision to approve the loan but will not base their decision solely on income and credit.
Naples reverse mortgage lenders take the following factors into consideration while reviewing the file:
- Appraisal is the most important item in a HECM transaction. The final loan amount will not be established until the collateral ( appraised) value is established.
- The age of the applicant
- Certificate of counseling course completion
- Loan product selected. The terms and conditions vary on which product is selected
- The index chosen by the borrower (US treasury 1 YR T-Bill / 1YR Libor or CMT index)
A certificate of counseling for Naples reverse mortgage is a requirement. The counseling must be completed upfront before the loan application can be submitted to the lender. This course will give a detailed explanation of the entire HECM process. It is imperative the borrower understand the positive and negative features of a reverse mortgage.
Naples reverse mortgage properties must be single family home or a 1-4 unit property. HUD approved condos are also eligible for HECM financing.
Naples reverse mortgage can be very costly. The normal fees associated with this type of financing do exceed the standard threshold of conventional financing. This loan has a 2% FHA mortgage insurance premium fee that is charged to the borrower. Standard closing costs are required via title insurance, taxes, lender origination charges, survey etc.
Core Mortgage Financial has a reverse mortgage expert ready to take your call NOW at (855) 554-CORE (2673).
We will take the time to slowly walk you through the entire process of beginning to end. A Naples reverse mortgage is not for everyone. Each borrower has a unique situation and we will tailor the right program for your current financial needs. We will analyze and decide if a HECM is best for you before getting started. Let us answer any questions you might have by picking up the phone today. We have a Naples Reverse mortgage expert ready to take you call!
Contact Us today using our online form to inquire about a Naples Reverse Mortgage.
Helpful Terms Defined:
Collectively, the security instrument, the note, the title evidence, and all other documents and papers that evidence the debt. A Mortgage is a loan secured by a lien on real estate held in fee simple or on an acceptable leasehold estate. A loan made for the purpose of purchasing, building or rehabilitating real property, and secured by that property. A pledge of real property as collateral for payment of debt. The term is also used to describe both the mortgage (security instrument) and the promissory note evidencing the debt, which includes the terms of the debt’s repayment.
The evidence of indebtedness for a mortgage loan. A note is the instrument evidencing the indebtedness secured by a security instrument that sets forth the amount the owner owes the lender and the manner in which the debt is to be satisfied. The note establishes the payment terms, conditions under which prepayments may be made, and the lenders rights in the event of default. A written agreement between the mortgagor and the mortgagee specifying the amount and terms of repayment for a loan.
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