Most people are not aware that there are actually different kinds of reverse mortgages they can go for. If you don't know this yet, the reverse mortgage is one type of loan that permits you to get a part of the equity of your home. However, you have to meet some qualifications for you to be able to apply for this kind of loan. The different reverse mortgages actually work in the same manner. However, you should know that there are three types of reverse mortgages and they are the private loan, single-purpose and government-funded.
Know more about the WA reverse mortgage through HECM loans info Washington state. The home equity conversion mortgage loan or the HECMs create 90% of the PA reverse mortgages. Such loans are being insured by the federal government. It is therefore a great choice for the lenders and the borrowers. The two types of HECM loans are the HECM standard and the HECM saver.
The borrowers may also buy a home with the HECM for purchase program. With this kind of program, the borrowers can take a reverse mortgage and buy a new home in a single transaction. These are great for some people but some individuals are more interested about reverse mortgage information about the standard or saver.
The HECM loans offered by the WA reverse mortgage companies or HECM reverse lenders are based on two factors which are the borrower's age and the home equity amount. One requirement to be qualified for the HECM loans is to be at least 62 years of age. Moreover, the borrower should have a one to four unit home. The home should be the borrower's primary residence. Income or credit requirements are not needed since the HECM loans are provided according to the home's equity.
In the mortgage industry, the single-purpose and private reverse mortgages create a small portion. There are more borrowers that want the government-backed loans because they are able to benefit more from these. A non-profit organization or government agency provides the single-purpose loan. Such loans are offered to those consumers who have low income or moderate income. With these VA HECM loans, the borrowers are not forced to pay costly premiums. However, the borrower can just borrow a really small amount of cash. The loan may just be utilized for one purpose like for costly home repairs.
It is essential to go for the reverse mortgage information if you are interested of this loan. In the market these days, the HECMs are the most popular. Individuals with unique needs can choose other options which they can apply for.
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