Actually the idea of the group reverse mortgage is the same as the group flats, which especially the young people favour. Belonging to the group allows a person to live in a bigger house and enjoying better life quality, than the life in a one person, small flat would offer. Sounds promising, or what?
1. The Target Of The Reverse Mortgages.
The original target of US Federal Government, when it decided about the reverse loans was to arrange a source of extra income for those senior citizens, which were cash poor, but equity rich. Actually the target was to improve the life quality of the seniors by offering a way to receive more money.
The group reverse mortgages improve the Government idea by offering each senior in the group better living standards, because the group can buy bigger and higher quality house or flat compared to one senior. I wonder, why the limit in this case is down to three persons?
2. Why The Group Is Better?
One of the main problems of some seniors is, that they suffer loneliness. Another problem is, that their standard of living is low and they live in the too small homes. When seniors build a group of two or three, they will solve many problems with one hit. They get company, they get better social life, they get better homes and they can share many things.
3. What Are The Qualifications For Three Seniors?
If we forget the human relations and think seniors only as the borrowers, the qualifications are easy to fulfil. Each must be at least 62 year old and owner of the home, i.e. the title must contain three names. All seniors must use the home as their primary residence. And there must be home equity left.
4. You Have To Meet The Counselor.
Because the reverse loan rules can vary state by state, it is useful to meet the counselor to get the correct guidance. This meeting must be prepared with the long question list. The counselor is an expert, who can also tell about the alternatives, because he does not try to sell anything.
5. Benefits To The Group Of Three.
As you may recall, the reverse mortgages will not be paid back untill the last borrower will move away, sell the home or pass away. There is no monthly payments whatsoever, but the loan capital, interests and all the costs will be apid back, when the running time is out and the home will be sold. The borrowers have to take a so called mortgage insurance.
The idea is, that if the home selling price will not cover all the costs in closing, the missing part will be taken from the mortgage insurance. If you have a group of seniors and you are thinking about the reverse mortgages, think about the many benefits it will bring to you. It is slightly more costly than the usual mortgage, but on the other hand it will solve many problems, i.e. brings some extra cash for your senior group.
1. The Target Of The Reverse Mortgages.
The original target of US Federal Government, when it decided about the reverse loans was to arrange a source of extra income for those senior citizens, which were cash poor, but equity rich. Actually the target was to improve the life quality of the seniors by offering a way to receive more money.
The group reverse mortgages improve the Government idea by offering each senior in the group better living standards, because the group can buy bigger and higher quality house or flat compared to one senior. I wonder, why the limit in this case is down to three persons?
2. Why The Group Is Better?
One of the main problems of some seniors is, that they suffer loneliness. Another problem is, that their standard of living is low and they live in the too small homes. When seniors build a group of two or three, they will solve many problems with one hit. They get company, they get better social life, they get better homes and they can share many things.
3. What Are The Qualifications For Three Seniors?
If we forget the human relations and think seniors only as the borrowers, the qualifications are easy to fulfil. Each must be at least 62 year old and owner of the home, i.e. the title must contain three names. All seniors must use the home as their primary residence. And there must be home equity left.
4. You Have To Meet The Counselor.
Because the reverse loan rules can vary state by state, it is useful to meet the counselor to get the correct guidance. This meeting must be prepared with the long question list. The counselor is an expert, who can also tell about the alternatives, because he does not try to sell anything.
5. Benefits To The Group Of Three.
As you may recall, the reverse mortgages will not be paid back untill the last borrower will move away, sell the home or pass away. There is no monthly payments whatsoever, but the loan capital, interests and all the costs will be apid back, when the running time is out and the home will be sold. The borrowers have to take a so called mortgage insurance.
The idea is, that if the home selling price will not cover all the costs in closing, the missing part will be taken from the mortgage insurance. If you have a group of seniors and you are thinking about the reverse mortgages, think about the many benefits it will bring to you. It is slightly more costly than the usual mortgage, but on the other hand it will solve many problems, i.e. brings some extra cash for your senior group.
