There is a lot you need to know about reverse mortgages in general, but if you need a reverse mortgage in Idaho, then keep reading. Each state has different reverse mortgage rules and regulations. Make sure to do your research on your state and housing market. Overall here are just a few things that you need to know when it comes to reverse mortgages.
Idaho Reverse Mortgage Specifics
Idaho, like many other states may have a set of specific rules and regulations when qualifying for a reverse mortgage. Your home’s value and payout depends on a number of factors unique to each borrower. For an easy way to access specific information on a reverse mortgage in Idaho, you can speak with a local specialist who can help guide you in the right direction. They will help you break apart all the pieces and explain each one so you feel comfortable throughout the whole process.
1st Need to Know: A Reverse Mortgage
A reverse mortgage is a special type of loan. Some people get confused because you do not make monthly payments like most loans require. In order to qualify for a reverse mortgage loan you need to be aged 62 and above which allows seniors to stay in their homes and spend the extra cash on other expenses. Yes, you will have extra money and be able to stay in your home but there is more to it that that. A reverse mortgage allows for you to tap into your home’s equity and convert it into cash. For a quick breakdown check out our reverse mortgage infographic on the information you need to know first.
2nd Need to Know: Reverse Mortgage Fees
With a reverse mortgage comes a loan fee. These fees include insurance premiums, organization loans, and closing costs. Some of these costs can be included in your loan, but that will reduce the overall cash that is available to you. These fees are a small price to pay when you get to stay in your home and you have extra cash that can be spent on expenses like health care and vacations.
3rd Need to Know: Reverse Mortgage Extended Qualifications
You do not just receive a reverse mortgage as soon as you turn 62 years old. You have to go through an application process. One of the things that the banks look at is the overall home’s equity. The bank also looks into your finances to see if you can afford to continue paying the following;
- Property taxes
- Homeowners insurance
- Homeowners association fees
- Can you maintain the property
Reverse mortgages do not cover those four things in the loan itself so that means the owner is responsible for paying those. If those costs can be afforded then the bank will most likely grant the loan.
4th Need to Know: Home Requirements for a HECM
Not everyone is eligible for a reverse mortgage. The United States government will only issue a reverse mortgage if it is following the right requirements. One of these being the Home Equity Conversion Mortgages also known as the HECM. Meaning that the home needs to be classified as one of the following;
- Single family home
- Property with two to four units if at least one unit is occupied by the borrower.
- Must meet all FHA standards
Remember to do your research to see if your home will qualify for a reverse mortgage.