Important Reverse Mortgage Rules to Review with Your Loved Ones
Understanding the reverse mortgage rules and laws that determine to whom and how these loans can be issued is a crucial part of learning all about reverse mortgages. At Citizens Lending Group, we help borrowers in California, Pennsylvania, and Florida gain the knowledge they need to make the best decision about their life in retirement. A huge part of this is knowing how reverse mortgage rules affect your loved ones and family members.
Contact us today to learn more about reverse mortgage requirements for California, Pennsylvania, and Florida seniors, as well as how these mortgages can help you protect your loved ones.
Learn These Reverse Mortgage Rules to Prepare Your Family
While a reverse mortgage can be a very valuable option for making the most of your retirement, many retirees wonder what affect the loan will have on their families. Fortunately, the rules that make up reverse mortgages protect borrowers, their families, as well as reverse mortgage lenders from excess risk.
Some important reverse mortgage rules include:
Your Current Income Must Cover Upkeep
One concern that families have when it comes to reverse mortgages is the chance that they will not be able to make payments on the loan and will lose their house because of it. In reality, reverse mortgages do not require monthly payments. While they do require homeowners to continue to pay for taxes and regular home maintenance, reverse mortgage rules require that retirees prove their fixed income is enough to cover taxes and maintenance of the home. This protects retirees and their families from taking on a loan for a house they could not afford anyway.
You Will Not Pay More than Your Home is Worth
Another concern is that when our loved ones pass on, we could be left with the bulk of their loan if they were unable to pay it back. Again, reverse mortgage rules protect families from this situation because if the final sale price of your home is not enough to cover the remaining balance on the loan, Federal government insurance covers the difference. You and your family will never have to pay back more than the selling price of your home.
You Do Not Have to Sell Your Home
Many families opt for a reverse mortgage but still want to be able to leave their home in the family after they have passed. While it is true that you must pay the reverse mortgage in full at the time the last borrower leaves the home or the home is sold, there is no requirement that you have to sell the home to repay the loan. Reverse mortgage rules allow surviving family members to pay the mortgage out of pocket if they want to keep the home.
Contact Us with Additional Questions About Reverse Mortgage Rules in CA, FL, & PA
Reverse mortgage rules can be difficult to navigate. It can be even more complicated to understand how reverse mortgage rules affect our families. If you live in Pennsylvania, Florida, or California, contact our experts today to learn more about what is best for you and how reverse mortgage rules will protect you and your family from the financial difficulties you may encounter in retirement. Contact us today to learn more about reverse mortgage requirements.