Getting a reverse mortgage in Pittsburgh isn’t for everyone, but for some seniors it can provide a powerful funding solution for a variety of different circumstances. But while these types of mortgages are getting increasingly more popular thanks primarily to the sharing of information on the internet, there’s also an unfortunate amount of misinformation being spread that can confuse or even misguide potential borrowers. Therefore, to get a reverse mortgage in Pittsburgh, you must first get the facts.
What is it?
Is simple terms, a reverse mortgage allows you to access some or all of the equity in your home without being required to make payments on the loan. This can be taken as a lump sum payment to be used as you please, or it can be paid to you on a monthly basis or as a revolving line of credit. As long as you live in the home, maintain its upkeep and pay your taxes, you will not be required to make payments.
When you or your surviving spouse pass on or move from the home, the loan will become payable. Family members can pay the amount due and retain the property, or the home can be sold and any proceeds beyond the repayment of the reverse mortgage will be distributed according to the terms of the loan and the will of the homeowner.
Why would I want one?
Many people who acquire a reverse mortgage in Pittsburgh use the funds as a reliable source of income. While there may be other uses for such a loan including lump sum disbursements used for structural or property improvements, to payoff other, high-rate loans, or even to put grandchildren through college, most people use the line of credit as supplemental income. In fact, this is largely what the US government’s Housing and Urban Development designed the program for. However, there are no stipulations as to what can be done with the money.
What are the risks?
Reverse mortgages in Pittsburgh offer borrowers a significant amount of protection from risk. The primary requirement of this type of loan is that the borrower must maintain the property in good repair, and property taxes must be paid on time. Provided these stipulations are met there isn’t much risk because the borrower isn’t expected to make payments.
Do I qualify?
If you are age 62 or over and have equity available in your home or property, you may qualify for a reverse mortgage. There are no income or credit requirements because the loan is not based on a borrower’s ability to pay. However, potential borrowers must first complete an FHA (Federal Housing Administration) approved course that certifies participant’s understanding of reverse mortgages.
To learn more about this program and to find out if you qualify right now, call the number at the top of your screen for an immediate, free consultation. You can also fill out our simple online application form to get a quote electronically, or write to us using the contact form above.
