Ask Val

September 17, 2010

Reverse Mortgage, Is It Smart?

Filed under: Elder Law,Estate Planning,FHA Loan,HECM,Reverse Mortgage — Valerie Springer @ 6:50 pm

There are 5 key points to think about when you decide a  HECM Reverse Mortgage may be your best option. Most important find an expert loan officer willing to help you make a determination.

1. Why do you feel a reverse mortgage would benefit you? If you are thinking of taking a vacation or reinvesting the money it would be very costly. If someone is trying to sell you something and suggests you take out a reverse mortgage you should be very cautious of their intent.

2. Can you even afford a reverse mortgage? A reverse mortgage is very expense, You do not make monthly payments but interest will accrue on the loan every month. The younger you are when you take out a reverse mortgage (min age 62) the longer the interest will grow which in essence will increase the amount you owe.

3. Can you afford to use your home’s equity? If you are not facing a financial emergency you may consider another option.

4. Do you have other options? If you have the means to take out a home mortgage and make the monthly payments this would be a less costly option than a reverse mortgage. Have you thought of downsizing and selling your current home to buy one with lower costs or in an area that offers more services?

5. Do you understand how a reverse mortgage works? You need to find out up front if this could benefit you or if there is a better option. You must complete couseling and receive a certificate to move forward. Your HECM Reverse Mortgage Loan Officer can give you the names of counseling agencies in your area.

A reverse mortgage can be the best thing since sliced bread if you understand and limited income. It gives you the opportunity to use your home’s equity while you need it. It can help supplement an income, help with medical expenses or long term care. You can make repairs on your home or purchase a vehicle and not worry about adding high debt to your monthly budget. The money is yours to spend as you wish but wisdom is important.

If you are interested in a HECM Reverse Mortgage in Alabama, call Valerie Springer .  205-995-7283 x 305

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Reverse Mortgage Benefits

Filed under: ASK VAL,Elder Law,Estate Planning,FHA Loan,HECM,Reverse Mortgage — Valerie Springer @ 6:46 pm

Until the HECM Reverse Mortgage was introduced the only 2 ways you could use the equity in your home was to sell the home and move out or take out a loan which required monthly payments. If you own your home (or have lots of equity) and the youngest person living in the home is 62 years of age you are most likely eligible.

With the “Reverse” mortgage you do not have to do either of the above. A reverse mortgage is a loan which allows you to take the equity out of your home while continuing to live in it. You most likely never have to make a payment back until you die, sell the home or permanently move out.

You may receive the money in a lump sum, regular monthly cash advance or a creditline that allows withdrawals when needed. Your income levels do not matter because you do not have to make a payment back. If you had no income and owned your home you could still qualify.

Even though you receive a “Reverse” mortgage, you still own your home, so the homeowner will still be responsible for property taxes, homeowner’s insurance and routine upkeep of the home. Once neither of the homeowners live in the house as their primary residence the heirs may then sell the home and repay the lien. If there is money left it is given to the estate.

More to come on Reverse Mortgages. If you have any specific questions you would like Valerie Springer to discuss please contact me at valerie.springer@nflp.com

Reverse Mortgage & HECM

Filed under: ASK VAL,Elder Law,Estate Planning,FHA Loan,HECM,Reverse Mortgage — Valerie Springer @ 6:45 pm

REVERSE MORTGAGES (HECM) and What This Means THE HOME EQUITY CONVERSION MORTGAGE (HECM) is the ONLY reverse mortgage that is insured by the federal government. HECM loans are insured by the Federal Housing Administration (FHA). FHA is governed by US Department of Housing and Urban Development (HUD). FHA tells HECM lenders how much to lend based on age and the value of home. The HECM program limits loan costs and FHA insures the lender will meet their responsibilities.

HECM usually give the largest payout of any reverse mortgage as well as more choices on how the money is paid and most importantly you can use the money for any purpose. Reverse Mortgages can be costly but HECM’s are generally less expensive than those that are privately insured. Privately insured reverse mortgages may have lower fees but are usually higher in interest rate. Overall, HECM’s are likely to be less expensive in the long run.

The state and local government sometimes offer reverse mortgages which cost the least but they are most always used for one specific purpose such as to pay your taxes or make a certain repair. Also mostly available to low to medium income.

HECM’s are available all over the United States. A few key factors:

* Youngest owner must be 62 or older, live in home as primary residence and not be delinquent on federal debt.

* Home must be a single-family residence in a 1-4 unit dwelling or part of a planned unit development (PUD) or a HUD approved condo. Some manufactured homes are eligible but most mobile homes are not.

* Home must meet HUD’s property standards but you have the option of using the HECM to pay for repairs that could be required.

* All homeowner’s wishing to seek a HECM must attend counseling from a HUD-approved counseling agency. Loan officer can provide a list of counselors and borrower’s must present an original certificate before loan can be approved.

For answers to your questions, contact your Reverse Mortgage Expert in Alabama, Valerie Springer.

Yours to Count On,

Valerie Springer

Veterans, Spouses and Widow(er)s

My parents are in the process of completing Estate Planning and Asset Protection.  I have learned so much over the past few years with my Grandfather in the nursing home and the loss of another family.

Both wills had to be probated and while my family members thought they had planned well, we realized there was so much available we missed out on.

For instance. My Grandfather was a Veteran of World War II and would have qualified for Veterans Benefits.  He survived the great depression, worked hard all of his life and made wise financial decisions only to find out his money and assets would cause him to be a “private pay” patient at the nursing home. Lots of money going out monthly, nothing coming in.

He was told he did not qualify for VA benefits due to his income. This is not true. He and my Grandmother could have possibly received $1949 per month from the time they were in their mid to late 60’s. My Grandmother died at age 87 and my Grandfather died at age 93.

This money would have helped defer the costs of private sitters so they could remain in their home as long as possible. It would have also been a great help for assisted living and then nursing home expenses. I want to share this with you in hopes your Veteran or Veteran’s Spouse does not miss out on one of the few benefits available for their unselfish sacrifice to our freedom.

A Veteran or Veteran’s Surviving Spouse may be eligible for the VA Aid and Attendance Benefit to help pay for Home Health Care, Assisted Living Facility Care or Nursing Home Care.

Even if you have been told that you are not eligible due to income or asset limitations, there may be strategies to assist you in qualifying for this benefit.

Who is Eligible?

* The Veteran and The Veteran’s Surviving Spouse

An Eligible Veteran:

*Served 90 days or more active duty, with at least 1 day during a time of war

*Discharged from service, with no less than an honorable discharge

Periods of War:

*World War II December 7, 1941 – December 31, 1946

*Vietname Era August 5, 1964 – May 7, 1975/February 28, 1961 – August 4, 1964 (in Republic of Vietnam)

*Korea June 27, 1950 – January 31, 1955

*Persian Gulf August 2, 1990 through date to be prescribed by Presidential proclamation or law

This little known benefit may pay as much as:

Married Veteran (Veteran + Spouse): $1949 per month tax free

Single Veteran $1644 per month tax free

Surviving Spouse $1,056 per month tax free

If you, a relative or friend needs more information about this valuable benefit, contact Valerie Springer. I will be happy to provide you more information. Hoping to spread the word.

Don’t trust a friend, CPA or general attorney for this information. You need to see an attorney who practices Elder Law. I will be happy to refer you, I work with some of the best in the business.

Also, I am an expert in  HECM Reverse Mortgage. It is not for everyone but for some, it is absolutely a life saver.

If you are searching for more information on the above topics please contact Valerie Springer .

www.vshomeloans.com

Yours to Count On,

Valerie Springer

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