Reverse Mortgage in Florida
Florida has always been a popular place for senior citizens to move to and begin their retirements. With its scenic landscapes, proximity to the ocean, warm weather, and colorful culture, Florida makes the ideal relocation hub for people who want to enjoy this next phase of their lives in peace, comfort, and luxury. Even so, people who relocate to this state and buy homes in which to live often wonder what they can do to make sure they have enough to live on throughout their retirements. With that, Florida continues to see a boom of senior citizens who are applying for and receiving reverse mortgages for this purpose. Before people pursue this financing, however, they may want answers to some common questions that most Florida retirees have about reverse mortgages.
One of the primary concerns that retirees in Florida may have centers on whether or not they would qualify for this loan. In fact, the qualifications are quite clear and are relatively simple to meet, so long as people meet the age and homeownership guidelines. They must be 62 years of age or older and also own a home that they use as a primary residence. The house must be a single family home, a duplex or town home, a condominium, or an FHA-approved manufactured house that was built after 1976. If they can meet these first criteria, people can then proceed with their applications.
Another key concern that Floridians may have going into the application process would be the amount of money they could receive if they are approved for the reverse mortgage. The amount of money for which lenders will approve applicants is based on several factors. In general, the older a person is, the more money he or she can receive. If a couple is applying jointly, the approval amount may be based on the age of the older applicant.
The amount of money is also based on the equity value in the home being used on the application. The house must have enough positive equity to make the loan a worthwhile effort. A home that is upside down in its value or has no equity at all in it cannot be considered for a reverse mortgage. However, if the house has a positive appraisal value and enough equity that can be accessed, people can expect to reverse mortgage based partly or entirely on that amount. The house will have to be appraised prior to any decision being rendered, however.
Expectations after Approval
After retirees in Florida receive their reverse mortgage, they may then wonder what expectations the lender will have of them throughout the life of the loan. Their obligations to the lender are reasonable and generally will not require a lot of effort to satisfy. Even so, they must be aware of their financial obligations, which include paying for the taxes on the house every year and also keeping it insured with a viable homeowner’s insurance policy.
Likewise, owners will be expected to keep the house in good condition, make all of the necessary improvements and repairs, and protect the house from depreciating in value. The lender must sell the house after the owners pass away or move out of their home. If the home has a depreciated value, there could be a balance left on the loan that either the loan holders or their next of kin must pay for later.
As seniors citizens make Florida their retirement haven, they may utilize the most valuable asset in their possession to bulk up their retirement savings. They can choose to use their homes to get a reverse mortgage by knowing the criteria and approval guidelines in place for this financing.