What is a Maryland and Virginia Reverse Mortgage Loan?
The use of the term "Reverse Mortgage Loan" customarily reflects the option in which a senior Maryland or Virginia homeowner can receive equity disbursements on a selected basis to enhance the already existing income which the homeowner receives regularly from Social Security, pensions, and other forms of income.
Originally created in 1988 as the Home Equity Conversion Mortgage (HECM), product advances and improvements have transformed all three options available under the HECM program, including the Reverse Mortgage Loan, into an effective retirement financing tool.Under this selection, as a senior Maryland or Virginia homeowner, you can take your proceeds as monthly advances for a set period of time; as a monthly stream of funds for as long as you live in your home; as a lump sum which limits first year access but which is then completely available beginning in the 13th month; or a combination of these options. You choose the reverse mortgage plan that works best for your senior lifestyle.
As a senior Maryland or Virginia homeowner, a second option includes the creation of a HECM Home Equity Line of Credit. It is important to note that a HECM Line of Credit cannot be reduced or revoked because of market fluctuations in home value, as long as the terms of the loan are met. And the unused line of credit can increase annually to provide higher levels of borrowing power over time.The third option provides for a unique opportunity to purchase a new home. Each of these products is illustrated more completely in other sections of this site.
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General Requirements For Maryland or Virginia Reverse Mortgage Loans
You must be 62 years of age or older and:
- Own the property outright or have a small mortgage balance
- Occupy the property as your principal residence
- Meet the guidelines of the HECM Financial Assessment analysis. Not be delinquent on any federal debt
- Participate in a consumer information session given by an approved HECM counselor
- Single family home or 1-4 unit home with one unit occupied by the borrower
- U.S. Department of Housing and Urban Development (HUD) approved condominium
- Manufactured home that meets FHA requirements
Home Equity Loan Advantages For Seniors in Maryland and Virginia
Uses for a Reverse Mortgage Loan
[note: All existing mortgages on the designated property must be paid off with the reverse mortgage loan].