Home Page For Reverse Mortgage
Arkansas Reverse Mortgage is your home to gain knowledge about the FHA reverse mortgage program offered to homeowners that are aged 62 and older. This site contains articles and resources for homeowners who are considering a reverse mortgage and want to become educated on what this is. Our website has a reverse mortgage calculator and a detailed reverse mortgage guide important for making your decision.
A reverse mortgage is a loan against your home that does not require a monthly payment for as long as the homeowners live in the home. It is a program from the Federal Housing Administration, FHA, to homeowners over the age of 62. It is different from other types of loans because the borrower never has to make a payment during the loan.
Disclosed from a 2006 AARP survey the two most common uses of a reverse mortgage are to pay off an existing mortgage and for medical and daily living expenses.
A reverse mortgage is a loan that uses a home equity as collateral. The loan amount that the homeowner may take out of their home is derived from a few factors including the percentage from how much the property is worth. The percentage is determined by the age of the homeowner based on life expectancy. The loan does not have to be repaid until 6 months after the last surviving homeowner moves out of the property or passes away. At the time, the estate typically sells the home to repay the balance of the reverse mortgage and the remaining equity goes back to the estate. However, the estate is not personally responsible if the home does not sell for the payoff amount, and the lender takes a loss.