Insurance

This is very nice and flexible for the seniors, because now they can form a group for the reverse home mortgage, which adds the security feeling and is nice also otherwise. A natural group is a spouse and they have of course the same requirement, they have to fulfill the reverse home mortgage requirements.

1. The Qualifications.

We remember, that the target of the reverse home mortgage is to arrange more disposable cash for the seniors. This happens by loaning money against the equity of the home. So these seniors must be home owners and they have to live permanently at this home.

Additionally they must be age 62 or over and all 3 must be marked at the title, i.e. they must be owners of the home. Now they can use this ownership as a guarantee, when they loan money against the property, which they own. These seniors do not need to be relatives to each other. They can form a group of the same sexes, for instance.

2. How Do They Get The Payments?

The lender follows the payment plan, which the borrowers have planned. This plan depends naturally on the needs of these seniors. The alternatives are the lump sum, the monthly payments, the credit line or the combination of some or all of these.

3. The Duties Of The Owners.

The borrowers remain as the owners, which mean that they have to take care of the taxes, insurances and to keep the property in a good shape. If this does not happen, the lender can force the borrowers to pay the loan back earlier.

4. How Do The 3 Borrowers Handle The Back Payment?

The payment happens, when all borrowers or the last borrower will sell the home, move away or die. Then the home will be sold and a part of the selling price will be used to pay away the loan capital, interests and all the costs. The remaining part goes to the borrowers or to their heirs.

If the selling price does not cover the whole debt amount the obligatory mortgage insurance will handle the difference.

As you see, the terms are the same as to the single person. The key point is, that the 3 persons own the home, where they live permanently. They have to fulfill the qualifications, to take the mortgage insurance and to pay the taxes, the insurances and to keep the property in a good shape.

A good thing is, that these 3 seniors have the opportunity to join the financial forces to get a bigger home and to form a family. This can have a very important influence on all of them. I decided to write this article, because it is not widely known, that more than one senior can get the reverse loan.