In the past few years, the market for reverse mortgages has changed a lot. The financial crisis impact led to a number of changes in the rules regulations that guide the workings of reverse mortgages, reverse mortgagors, and reverse mortgage lenders. Some of these changes have led to better accessibility to reverse mortgages for senior homeowners. One of the options of senior homeowners is to get a reverse mortgage on their mobile home. This article will cover some helpful information for those who are considering getting a reverse mortgage on their mobile homes.
Learning about reverse mortgages
For those who are unaware of what reverse mortgages are, these are financial products that are similar to loans. Homeowners who are 62 years old or older can give a portion of their home equity in exchange for a loan from a lender. In most cases, reverse mortgage lenders only allow single-family homes, condominiums, and townhouses for reverse mortgages. There are some reverse mortgage lenders who allow homeowners to get a reverse mortgage on cooperative properties and mobile homes as well. The costs on reverse mortgages are not due until the property is sold, the homeowner moves from the property, or the homeowner passes away.
Getting reverse mortgages on mobile homes
Getting reverse mortgages on mobile homes can be more difficult than getting reverse mortgages on single-family homes. The main reason for this is that fewer reverse mortgage lenders allow homeowners to get reverse mortgages on mobile homes. To find lenders who accept mobile home reverse mortgages, it would be a good idea to start by asking friends and relatives who have already gone through the experience. Friends and relatives who have gotten mobile home reverse mortgages can help in finding reverse mortgage lenders and reverse mortgage brokers who are willing to accept a mobile home reverse mortgage deal. Homeowners can also search on the Internet to find online mortgage companies that accept mobile home reverse mortgages and offer deals with low rate online.
Remember that lenders may be stricter on mobile home reverse mortgages. Most lenders have extra requirements to qualify for a mobile home reverse mortgage. In general, one of the provisions stated by the US Department of Housing and Urban Development (HUD) is that constructed homes and mobile homes built in 1977 or later are eligible for reverse mortgages. Most lenders will require that the mobile home has a permanent foundation approved by the Federal Housing Administration (FHA).