Reverse Mortgages in Alexandria, VA

If you are a homeowner and are in need of extra cash, whether it’s to help pay off any loans or bills you might have, or simply to help make your day-to-day life more comfortable, then selling your home or trying to take out a loan aren’t your only options. One way to help ease whatever financial situation you are in is to take out a reverse mortgage on your Alexandria area home.

What is a Reverse Mortgage?

A reverse mortgage is a type of mortgage that was designed to help lessen the financial burden that many senior citizens often carry. While you could try to take out a second home mortgage, you would need to prove that you have adequate income in order to qualify qualify. This can be difficult for senior citizens since many of them no longer work Рand if they do, their income may not meet the amount need to qualify either way.

A reverse mortgage works different than a regular mortgage in that you don’t have to meet certain income requirements. To bypass this, a reverse mortgage basically lets you convert a part of the equity that you have in your home into cash – all while still remaining the owner of the home. This cash will be provided to you through monthly payments from the lender to the borrower, which is where the term “reverse mortgage” comes from.

Not only will you be able to use the money you receive from your reverse mortgage in anyway you please, whether it’s to keep up with your monthly expenses or to pay down other debts, but you won’t be required to pay back the loan until the house is sold or vacated. If you continue living in the home, you won’t have to make any payments towards the loan. You will, however, still be responsible for paying property taxes, homeowner association dues and homeowner’s insurance.

If the borrower passes away while living in the house, then the reverse mortgage will have to be paid back. The heirs of the borrower can either allow the property to be sold by the lender, pay the lesser of the mortgage balance or pay 95 percent of the property’s appraised value.

Do You Qualify For a Reverse Mortgage?

Because reverse mortgages were designed specifically with senior citizens in mind, there are a number of criteria that you will have to meet in order to qualify for a reverse mortgage. This includes:

  • You have to be 62 years or older.
  • The house you’re taking the reverse mortgage out on must be your primary residence.
  • The reverse mortgage must be your home’s primary lien, which means that if you have an existing mortgage, you will need to use your reverse mortgage to pay it off.

Reverse Mortgages in Alexandria, VA

If you are interested in getting a reverse mortgage in Alexandria, VA to help improve your financial situation, then you’ll want to speak to a licensed mortgage broker in Alexandria.

Contact Alex Echeandia today! 

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