Thinking about a Reverse Mortgage in Florida?

Considering a reverse mortgage? If so, I strongly suggest you do it before March 2nd 2015. Why, well that's very simple the financial assessment laws will come into play for any FHA case numbers aka reverse mortgage application after March 2nd.

What does this mean for you as a prospect for aor a reverse mortgage in Florida? Well, the amount of paperwork and questions you have to answer will become more extensive.

You will have to prove not only a willingness to handle the equity allotted but also the capacity to handle your ongoing expenses with the money that you receive. You will have to provide financial statements as well as monthly expenses and will be subject to certain requirements as it pertains to the debt and income you currently have.

If the lender deems appropriate they can actually hold up to 20 years of equity to pay your taxes and homeowners insurance if they view those costs as a risk for nonpayment.

In short the process will become more difficult and will impact many seniors who today would be able to get this particular loan.

Credit will also come into play and credit scores will be analyzed. Late payments to credit credit cards and mortgages will have a large impact on the qualification of the particular senior.

Another common question is the costs associated with a Florida reverse mortgage are the costs associated with paying off that loan at the time of sale. Many seniors are under the misconception that there are additional costs over and above that of a traditional FHA and conventional loan. This is simply not true.

There are no additional costs associated with paying off a reverse mortgage as it compares to any other mortgage loan. This fact should, once again give the senior more peace of mind that no one including themselves or their heirs, will get a financial surprise in this process. All of this is clearly documented in the material any senior receives. However because the material is often 70 or 80 pages long most seniors don't read it all.

In summary we are dealing with a non recourse loan so therefore there are no deficiency judgments or financial surprises to you or your heirs and also there are no additional costs to pay off that loan other than the loan amount and the accrued interest in mortgage insurance.