A REVERSE MORTGAGE on a MANUFACTURED HOME, is exactly as it sounds, it is achieving the opposite of a traditional mortgage or forward mortgage, on a manufactured home. A traditional or forward mortgage, requires a borrower to make a down payment and then equity is gradually built, when the borrower makes a monthly mortgage payment and decreases the debt. With a reverse mortgage a borrower can withdraw the home equity in their manufactured home, in exchange for a sum of money. The funds can be disbursed in the following ways:
· Monthly payments provided on the 1st of each month
· As a credit line, available as needed.
· As a lump sum for the full benefit amount
· OR Any combination or variation of the above options
We are happy to answer your REVERSE MORTGAGE and or manufactured home loans questions, 7 days a week at 800 315 8803 or you can visit us at www.bartprequalifies.com We lend Nationwide.
How does a REVERSE MORTGAGE work?
Essentially, with a reverse mortgage, instead of making a monthly payment of principal or interest, the principal does not decrease and the interest is tacked onto the loan balance. Therefore your debt is rising and your equity in the property is decreasing. Once the lender disburses the funds to the borrower/homeowner, the lender attains rights over the equity. The full amount of that disbursement, that has been provided, is now treated as a mortgage against the property and must be repaid, either by the homeowner or the homeowner’s estate.
In most cases, the homeowner or the estate will pay the lender back by selling the manufactured home. In some cases borrower or the estate choose to refinance the manufactured home in order to maintain ownership.
How do I get a REVERSE MORTGAGE?
First, the borrower must be 62 years of age in order to apply for a REVERSE MORTGAGE. Second, you must have equity in your manufactured home.
To start your REVERSE MORTGAGE APPLICATION on a manufactured home, please call us at 800 315 8803 or visit www.bartprequalifies.com We lend Nationwide!
Does my property qualify?
We offer REVERSE MORTGAGES on single family homes, condos, town homes, modular homes, manufactured homes, and 2-4 units.
On a manufactured home, the property must:
· Be a doublewide or larger
· Built before June 1976
· Be on a permanent foundation by the closing of the loan
· Property cannot have been moved more than once
· Borrower must own the land
Do you check credit?
Yes, we lend down to a 620 credit score NATIONWIDE! The only major rule of thumb is that a borrower cannot be delinquent on any federally backed mortgages i.e. student loans, SBA loans, FHA loan etc.
What if I had a bankruptcy?
There is no seasoning or waiting period once a Chapter 7 or Chapter 13 Bankruptcy is discharged. If the borrower is currently in a Chapter 13, permission will have to be given from the trustee and the borrower needs to show 12 months of on time payments.
What if I already have a mortgage?
A REVERSE MORTGAGE is based on the EQUITY that is in the manufactured home. You can have existing mortgage on the property and still qualify for a REVERSE MORTGAGE. That mortgage or mortgages, will be paid off at closing with the disbursement from the REVERSE MORTGAGE; because the REVERSE MORTGAGE must go into the first lien position. In the event, the REVERSE MORTGAGE does not cover the current mortgage(s), the borrower can bring additional funds to the table to close the loan.
How much money can I get from a REVERSE MORTGAGE?
The amount of money you are eligible to receive from a REVERSE MORTGAGE depends on your age (or the age of the youngest spouse in the case of couples), the appraised manufactured home value, interest rates at the time of application, and in the case of the government program, the lending limit in your area.
We are happy to answer your REVERSE MORTGAGE questions and or manufactured home loan questions, 7 days a week at 800 315 8803 or you can visit us at www.bartprequalifies.com We lend Nationwide!
How is my interest rate figured?
Borrowers are charged interest only on a REVERSE MORTGAGE, on the proceeds that are received. Fixed and variable interest rates are available. Rates are tied to an index, such as the 1-Yr. Treasury Bill or the London Interbank Offered Rate (LIBOR). Then a margin typically adds an additional one to three percentage points onto the rate that is charge to the borrower. Interest is not paid out of the available loan proceeds, but instead compounds over the life of the loan until repayment occurs. Beginning April 1, 2013, the HECM Standard product option is only available with an adjustable interest rate.
What fees are involved?
Just like a traditional or forward mortgage, there are fee involved with a REVERSE MORTGAGE. These fees are charged by HUD for the Up-Front Mortgage Insurance (UFMIP) for a HECM loan AKA HUD Home Equity Conversion Mortgages or the Saver Program, available under HECM, for borrowers that do not take all the funds available to them. On all HECM loans Mortgage Insurance is required, but it will vary from a Standard HECM loan or a Saver Program.
In recognition of the lower availability of funds and lower risk to HUD, the UFMIP charged on the Saver Program is just a fraction of that charged on the Standard Program. For example, on a $200,000 property today at 4.5% fixed interest, a 75 year old borrower will receive $22,200 less on the Saver Program than they would have on the Standard Program, but if he/she did not intend to use all the funds available under the Standard Program anyway, then the UFMIP would cost just $20 instead of $4,000. Right away that is a savings of almost $4,000 in fees on your reverse mortgage just by knowing how much of the loan proceeds you will need. The Saver is available as both a fixed rate and an adjustable so all the same pay-outs are available as on the Standard Product.
We are happy to answer your REVERSE MORTGAGE questions and or manufactured home loan questions, 7 days a week at 800 315 8803 or you can visit us at www.bartprequalifies.com We lend Nationwide.
Why am I being charged a servicing fee?
It is a monthly servicing fee covers the costs incurred with administering the REVERSE MORTGAGE such as customer service, maintaining accurate records of the outstanding loan balance, tracking property taxes/hazard insurance, certifying the borrower’s occupancy status, issuing statements of account, issuing and collecting payments, collecting on the loan when it becomes due, and discharging the mortgage. The fee is set aside from the principal limit to guarantee monthly payments.
Do I pay taxes on the disbursement?
Since the money is not earned, the disbursement is non-taxable.
WE advise you to speak to a tax advisor for any tax related questions.
All of the above information is a general over view of REVERSE MORTGAGES. Bart, at www.bartprequalifies.comis happy to answer your REVERSE MORTGAGE questions and or manufactured home loan questions, 7 days a week at 800 315 8803. Bart has been lending NATIONWIDE SINCE 1987, and offering REVERSE MORTGAGES since 1989.