Reverse Mortgage Pennsylvania
Understanding vital information about reverse mortgage in Pennsylvania
Are you or a family member one of the approximately two million senior citizens in the Commonwealth of Pennsylvania? If so, you may be eligible to take advantage of one of the numerous choices for reverse mortgages in Pennsylvania.
A myriad of options available for Pennsylvania reverse mortgages
There are a number of reverse mortgage options available to Pennsylvania seniors. One of the most common is the High Equity Conversion Mortgage (HECM). This loan option allows homeowners to take advantage of their home’s equity while physically remaining in the home.
An FHA-insured HECM has numerous advantages. Typically, the loan has no monthly repayment requirements, no predetermined maturity date, and does not require the borrowers or their heirs to pay for any loan balance in excess of the sale price.
Additionally, the borrower remains the owner of the property for the duration of their time in the home.
What are the HECM rules in Pennsylvania
In Pennsylvania the requirements for obtaining a HECM are:
- The youngest borrower must be at least 62 years of age;
- The borrowers must own the home outright or have a balance that can be paid off from the proceeds of the new reverse mortgage loan;
- Property must be used as a primary residence of the borrowers;
- Property must be a single-family residence or a qualifying two to four-unit home with the borrower living in one of the units;
- Borrower must be able to demonstrate the ability to afford future housing costs such as property taxes;
The loan generally does not have to be repaid until the last remaining borrower passes away, the borrower sells the house, the last remaining borrower is out of the home for 12 consecutive months, or if the homeowner fails to meet obligations such as property taxes or necessary repairs.
Is a Pennsylvania reverse mortgage right for you?
Determining which type of reverse mortgage, if any, is right for you is more than just a question of eligibility. Factors such as the borrowers’ goals, the amount of equity in the home, and the borrowers’ other assets can impact such a decision.
Determining which type of reverse mortgage company in Pennsylvania, if any, is right for you is more than just a question of eligibility. Factors such as the borrowers’ goals, the amount of equity in the home, and the borrowers’ other assets can impact such a decision.
Single purpose reverse mortgages available to Pennsylvania seniors
A single-purpose reverse mortgage is exactly what it sounds like. The proceeds of the loan are for a single designated purpose such as paying property taxes, repairs, or home improvement. While these loans are limited in purpose, they do have significant advantages. For example, the proceeds of a single-purpose loan are often tax-free.
Additionally, these loans have laxer eligibility requirements, making it easier for low-income households to obtain. Also beneficial are the lack of monthly payments. Often, the property tax deferral single-purpose loans are offered by state and local government entities.