VA Reverse Mortgage?
I saw an ad in Portland Oregon to get a no-payment reverse mortgage from the Department of Veterans Affairs (VA). Is this legitimate?
Answer:
No. The VA does not provide no-payment reverse mortgages.
Some mortgage brokers run deceptive advertisements aimed towards veterans which promise special offers, suggest VA approval, or provide you with a “no-payment” reverse mortgage to attract older Portland residents desperate to stay in their houses.
You’ll want to look out for and avoid lending options in Portland OR that advertise:
- Official-looking emblems implying that the home loan comes from a government agency such as the VA or the Department of Housing and Urban Development (HUD). Government departments guarantee various mortgage loans, but they don’t provide loans directly.
- Boasts of extremely low rates. Boasts of percentage rates as low as 1.9 percent for “VA refinancing” may turn out to only be effective for a limited period of time.
- Claims that a reverse mortgage will let Portland veterans stay in their property payment-free. Typically, borrowers using these loans must continues to pay their taxes and insurance and may lose their houses if they don’t.
- Announcements of “pre-approval” and huge sums of cash or credit readily available. Generally, there is no guarantee that a city state consumer is going to be approved for a reverse loan or eligible for a loan of a specific size this early in the process.