Do I still need to pay my Portland Oregon property taxes and homeowner’s insurance with a reverse mortgage loan? What about the costs of maintenance necessary to maintain my property? Answer: Yes. For those who don’t pay your homeowner’s insurance coverage and real estate taxes, or take care of essential repairs, it’s possible to lose your home to foreclosure. Just about all reverse mortgages are Property Equity Conversion Mortgages (HECMs). The Federal Housing Administration (FHA), a part of the Department of Housing and Urban Development (HUD), insures HECMs. With a HECM, if you don’t pay your insurance and property taxes, or if you let the shape of your home to…

What should I discuss with my Portland Oregon housing counselor if I’m contemplating applying for a reverse mortgage? Below are some things you might want to discuss with a housing counselor: How does a reverse mortgage loan work? Would it be more effective for you to take out the funds as a line of credit, in monthly installments, or in a lump sum?Based upon which of these three basic options you select, you could be qualified for an adjustable rate or a fixed interest rate. Which will work better for you? What fees are you going to have to pay up front, before you can get the reverse mortgage? Examples…

What are the different types of reverse mortgages available in Portland OR? Yes. Most reverse mortgages today are insured by the Federal Housing Administration (FHA), as part of its Home Equity Conversion Mortgage (HECM) program. Once you apply for a HECM mortgage in Portland, you may select from the following choices: Payment of mortgage loan funds. You could get funds as a line of credit, monthly payment, a combination of these, or a lump sum. Monthly interest rate. You may choose from a fixed rate and an adjustable interest rate. Fixed rates are only provided with the one time settlement option. The reverse mortgage program also offers 2 special purpose…

What should you do if I have a reverse mortgage and I received a notice that I’m “delinquent,” “in default,” or behind on my real estate taxes and insurance coverage in Portland Oregon? Answer: Take action immediately. Should you delay, or neglect the notice, you might eventually be forced to leave your house. Staying up-to-date on your real estate taxes and home insurance is a condition of your reverse mortgage. Should you get in arrears, you will be considered “in default” on the reverse mortgage loan. Default implies that you aren’t meeting guidelines you agreed to when you obtained the mortgage loan. If you don’t take the appropriate steps to…

How much money does reverse mortgage housing counseling cost in Portland Oregon? Housing counselors are permitted to charge for reverse mortgage counseling, but the agency must inform you about the fee before charging you it, and the fee has to be affordable. Costs are normally about $125. Counseling agencies are also required to waive the counseling fee when your income is under two times the poverty level. Tip: Make sure your reverse mortgage counselor is approved by the U.S. Department of Urban Development (HUD). You can find HUD-approved housing counselor by going to HUD’s counselor research web page or phoning HUD’s housing counselor referral line (1-800-569-4287). Tip: If you’re behind…

Can everyone in Portland apply for a reverse home mortgage loan? Answer: No. Not everybody in Portland Oregon can apply for a reverse mortgage. There are specific requirements you need to satisfy to become eligible for a reverse mortgage. The most common type of a reverse mortgage is called a Home Equity Conversion Mortgage (HECM). The Federal Housing Administration (FHA), a part of the Department of Housing and Urban Development (HUD), insures HECMs. Note: This web page has specifics about HECMs, which are the most common kind of reverse mortgage loans used in Portland OR. To qualify for a HECM: You will have to be a minimum of 62 years…

When must I repay a reverse mortgage loan in Portland? Answer: Reverse home mortgages in Portland Oregon usually are due and payable when you die, but might will need to be paid back earlier if you happen to do not make use of the house as your principal home, or do not pay property taxes or homeowner insurance, or complete needed repairs. Almost all reverse mortgages on the market in Portland OR are Home Equity Conversion Mortgages (HECMs). The Federal Housing Administration (FHA), a part of the Department of Housing and Urban Development (HUD), insures HECMs. A HECM home loan needs to be paid back as soon as the last…

May I use a reverse mortgage loan to purchase a home in Portland OR? Answer: Yes. The Department of Housing and Urban Development (HUD) has a “HECM for Purchase” program which enables seniors in city state, age 62 or older, to purchase a property by using a reverse mortgage. You’ll need a much larger down payment compared to a conventional mortgage, but like all reverse mortgages, you won’t have to make monthly mortgage payments on the mortgage provided that you meet the requirements of the loan. Tip: For more information on the HECM program, check out HUD’s website, or ask your housing counselor. You can find a housing counselor using…

How are you affected if my reverse mortgage loan balance becomes larger than the value of my Portland Oregon property? Answer: This will depend upon which kind of reverse mortgage you have. The majority of reverse home loans these days are insured by the Federal Housing Administration (FHA), as part of its Home Equity Conversion Mortgage (HECM) program. An FHA-insured HECM loan is a non-recourse loan. This means that once your home is sold to pay back the home loan, neither you nor your family will be required to pay over the sales price of the home. The insurance will cover any deficiency, assuming that your home sells for at…