Portland OR Reverse Mortgage Loans - Reverse Mortgage Portland

FHA Reverse Mortgages for Seniors in Portland OR (HECMs)

To much month and not enough income? Is making the mortgage payment getting to be to much? Worried about the future and what sort of financial issues might pop up? Have you lost money in the market or any other financial loss? For some time nobody in Portland knew what a Reverse Mortgage was. Now, they’re the talk of the town and fashionable as senior citizens are acquiring a home loan without any monthly payment and if there is proceeds received, they are tax-free. This key fact is helping numerous seniors manage life right now!

Even so, Reverse Mortgages are generally specialized and require an in depth explanation by a loan officer with working experience. My objective is to present in-depth details, presenting the pros and cons about all the Reverse products, in order for each individual to decide if a reverse will be the right opportunity. Preferably, a face to face meeting (no obligation) is ideal. You deserve the time spent. I’m able to provide information by mail or email. Yet again I emphasize, it’s better comprehended face-to-face. Your house is normally your biggest asset and I keep this front and center while I educate you.

Reverse Mortgages are good for a number of people in Portland, however they are not for everyone.

Will this be the best choice for you? Give me a call and we can assess your situation and needs. I will meet you anywhere that you feel comfortable, within reason of course. Most information I can give you over the phone, mail, UPS, or E mail. And, once more, there is no obligation, even if we have a face-to-face meeting!

If you are a homeowner age 62 or older and have paid off your mortgage or paid down a large amount, and are also currently residing in your home, you may take part in FHA’s Home Equity Conversion Mortgage (HECM) program. The HECM is FHA’s reverse mortgage loan program in Portland enables you to take out a percentage of your home’s equity.

You could also use a HECM to buy a principal residence if you are able to utilize funds on hand to cover the difference between the HECM proceeds and the purchase price plus settlement costs for the house that you are purchasing.

How the HECM Works in Portland

There are lots of considerations before deciding whether a HECM fits your needs. To aid in this process, you are required to meet with a HECM counselor to go over program eligibility requirements, financial consequences and alternatives to obtaining a HECM and repaying the loan. Counselors will discuss circumstances for the mortgage becoming due and payable. Upon the completion of HECM counseling, you should be capable of making an independent, well informed determination of whether the reverse mortgage will fulfill your specific needs. You can search on the internet for a HECM counselor or call (800) 569-4287 toll free.

There is individual and real estate eligibility guidelines that have to be satisfied. You can use the listings below to see if you qualify. If you fulfill the eligibility criteria, you can complete a reverse mortgage application by calling a FHA-approved financial institution in Portland OR. You can search online for a FHA approved lender you can also ask the HECM counselor to provide you a listing for someone in Portland. The mortgage provider will discuss other requirements of the HECM program, for example first year payment limits, available payment options, the HECM approval process, and repayment terms.

Portland Borrower Requirements To Qualify and Apply For A Reverse Mortgage Loan

You must:

Be 62 years old or older
Own the home outright or paid down a large amount
Occupy the house as your primary residence
Not be delinquent on any kind of federal debt
Have financial resources to continue in order to make timely payment of recurring property charges such as real estate taxes, homeowner insurance and Homeowner Association fees, etc.
Take part in a consumer information session given by a HUD approved HECM counselor

Portland Reverse Home Loan Property Requirements

The following eligible property types in Portland are required to fulfill all FHA property standards and flood requirements:

Single family home or 2-4 unit home with one unit occupied by the borrower
HUD approved condominium project
Manufactured home that satisfies FHA guidelines

Portland ORFinancial Guidelines For A Reverse Mortgage

Income, assets, monthly living expenses, and personal credit history will be verified.
Timely payment of real estate taxes, hazard and flood insurance premiums will be verified

For adjustable interest rate reverse mortgages, you are able to select one of the following payment programs:

Tenure – equal monthly payments provided that at least one borrower lives and continues to occupy the property as a principal residence.
Term – equal monthly payments for a fixed period of months selected.
Line of Credit – unscheduled payments or in installments, at times and in an amount of your choosing up until line of credit is depleted.
Modified Tenure – combination of line of credit and scheduled monthly payments for as long as you remain in the home.
Modified Term – combination of line of credit plus monthly payments for a fixed period of months selected by the borrower.

For fixed interest rate mortgages, you will receive the Single Disbursement Lump Sum payment plan.

Reverse Mortgage Loan Amounts in Portland Oregon Are Based On

The amount you may borrow is dependent upon:

Age of the youngest borrower or eligible non-borrowing spouse
Current interest rate; and
Lesser of:
appraised value; the HECM FHA mortgage limit of $679,650; or the sales price (only applicable to HECM for Purchase)

When there is more than one borrower and no eligible non-borrowing spouse, the age of the youngest borrower must be used to find out the amount you can borrow.

Costs of A FHA Reverse Loan in Portland Oregon

You can pay for most of the costs of a HECM by financing them and having them paid from the proceeds of the loan. Financing the fees means that you don’t need to to pay for them out of your pocket. On the flip side, financing the costs lowers the net loan amount available to you.

The HECM loan in Portland includes a number of fees and charges, this includes: 1) mortgage insurance premiums (initial and annual) 2) third party fees 3) origination fee 4) interest and 5) servicing fees. The mortgage company will discuss which fees and charges are mandatory.

You will be charged an initial mortgage insurance premium (MIP) at closing. The initial MIP will be 2% of the max claim amount. Over the life span of the loan, you’ll be charged an annual MIP that equals 0.5% of the outstanding home loan balance.

Mortgage Insurance Premium
You will incur a cost for FHA mortgage insurance. The mortgage insurance guarantees that you will are given expected loan advances. You can finance the mortgage insurance premium (MIP) within your loan.

Third Party Charges
Closing costs from 3rd parties consist of an appraisal, title search and insurance, surveys, inspections, recording fees, mortgage taxes, credit report checks in addition to other fees.

Origination Fee
You likely pay an origination fee to pay the mortgage company for handling your HECM home loan. A loan provider may charge the greater of $2,500 or 2% of the first $200,000 of your home’s value plus 1% of the amount over $200,000. HECM origination fees are limited to $6,000.

Servicing Fee
Loan companies or their brokers in Portland provide servicing throughout the life of the HECM. Servicing includes sending you account statements, dispersing loan proceeds and making certain that you satisfy loan requirements which includes paying real estate taxes and homeowner insurance premium. Mortgage companies are allowed to impose a regular monthly servicing fee of no greater than $30 if the loan has an annually adjusting rate or has a fixed interest rate. The mortgage lender may impose a monthly servicing fee of no more than $35 if the interest rate adjusts monthly. At loan closing, the lender sets aside the servicing fee and deducts the fee from the available funds. On a monthly basis the monthly servicing fee is added to the loan balance. Mortgage companies may also decide to include the servicing fee in the reverse mortgage interest rate.