Reverse Mortgages

"A Unique Financial Security Tool"

Imagine getting closer to having the income you need to remain living comfortably in your home in retirement. Or how about being able to make some repairs or renovations to your home? Or even meeting healthcare needs. Please note, though, that amounts actually available vary greatly on a case-by-case basis.

Jumbo Reverse Mortgages

At Strock and Tanner we offer a proprietary Jumbo Reverse Mortgage product that can be applied to properties valued between $500,000 and $6-million. Properties valued over $6-million are evaluated on a case by case basis. Eligible property types include single family residences, townhomes, and planned unit developments. Purchases and refinances are allowed as well. Ineligible property types are cooperative units, condos, 2-4 family dwellings, investment properties, manufactured homes, mixed-use properties, second homes, commercial properties, and properties with limited marketability.

Some credit issues that could also affect eligibility include:

(1) Potential borrowers with active/dismissed/discharged Bankruptcies within the last 5 years are ineligible,

(2) Outstanding Liens must be paid off at closing.

The plans for these Jumbo Reverse Mortgages are Fixed Rate Only.

There are several obligations and guidelines that borrowers should be aware of pertaining to the Jumbo Reverse Mortgage process. As part of the Preliminary Title Report, a Subject Address Certificate and Tax Certificate must be provided.

Appraisal requirements include:

(1) Appraiser that is an FHA approved Certified Residential or Certified General appraiser,

(2) All jumbo loans require a second appraisal (paid by the lender). It is important to note that a borrower must spend at least 183 days of the calendar year at the property.

Finally, a credit report must be provided on all loans).

This is an overview of the guidelines for a proprietary Jumbo Reverse Mortgage product.

Reverse Mortgage for Purchase

Home Equity Conversion Mortgage for purchase (HECM), allows seniors to buy a new primary residence and obtain a Reverse Mortgage in one transaction. All HECM borrowers must be placed on the sales contract and each of these persons must also be an eligible HECM borrower (age 62 or older). There are several documents that must be provided in order for an HECM purchase to proceed.

These include but are not limited to:

(1) Sales contract,

(2) Disclosure of the seller's property condition,

(3) Application documents,

(4) Signed and dated letter listing several aspects of the seller's property,

(5) Survey,

(6) Optional pest inspection report, and

(7) Documents for properties with new construction.

All new construction requires a CO prior to the application process being initiated.

This is a simple overview of the documentation required in order to begin an HECM Reverse Mortgage for purchase throughout the States of Florida.

It is important to note some of the guidelines that may affect the process of acquiring a Reverse Mortgage HECM for purchase. Reverse Mortgage HECM purchase transactions are not accepted for 2-4 unit properties and a HECM purchase transaction may not occur within 12 months of a short sale or Deed in Lieu of Foreclosure. In a HECM for purchase transaction, the seller is responsible for all repair costs (property condition must meet the FHA's minimum health and safety requirements). In order to close the HECM for purchase, the borrower must provide proof of funds required for the transaction to occur. A list of the documentation required to obtain this proof may be provided upon request. The buyer, or borrower, is expected to move into the property with 60 days of closing. The buyer is also expected, according to FHA guidelines, to retain the property (not resell) for at least 90 days.

For more information and details throughout the States of Florida please feel free to contact us at info@stcloans.com or call Toll Free at: 1-855-337-1600

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