Answers for your Allport Arkansas reverse mortgage questions

Useful information regarding reverse mortgages in Allport Arkansas


According to the Department of Housing and Urban Development (HUD), the number of HECM loan originations in Allport Arkansas and elsewhere insured by the Federal Housing Administration rose from 7,923 in fiscal year 1999 to 112,013 in 2008, representing an increase of more than 1,300%. HUD anticipates that the number of HECM originations will rise significantly in 2009 due in part to an increase in HECM loan limits from $362,790 to $625,500.

Types of Reverse Mortgage Loans

There are three versions of the reverse mortgage. They include single-purpose reverse mortgages, which are offered by some state and local government agencies and nonprofit organizations; Home Equity Conversion Mortgages (HECMs) which are a federally insured HUD product; and proprietary reverse mortgages, which are issued by commercial mortgage lenders. Single-purpose reverse mortgages are not available everywhere. In states and cities that offer them, they are a very low-cost arrangement and usually available only to low- and moderated-income households. There are no limitations on the use of funds generated by HECMs or proprietary reverse mortgages, and they are available everywhere. They are more expensive than single-purpose reverse mortgages. The amount you can borrow with either of these models depends on a number of factors but generally speaking, the older you are and the more equity you hold in the home the more you can borrow.

Reverse Mortgage Loan Requirements in Allport Arkansas


If you live in a higher-valued home in Allport Arkansas, you may be able to borrow more with a proprietary reverse mortgage, but the more you borrow, the higher your costs. The best way to see key differences between a HECM and a proprietary loan is to do a side-by-side comparison of costs and benefits. Many HECM counselors and lenders can give you this important information.

Financing a Reverse Mortgage in Allport Arkansas

Some who offer reverse mortgages in Allport Arkansas may pressure you to buy other financial products, like an annuity or long term care insurance. Resist that pressure. You don’t have to buy any products or services to get a reverse mortgage (except to maintain the adequate homeowners or hazard insurance that HUD and other lenders require). In fact, in some situations, it is illegal to require you to buy other products to get a reverse mortgage.

Bills.com, a Reverse Mortgage & You

With most reverse mortgages in Allport Arkansas, you have at least three business days after closing to cancel the deal for any reason, without penalty. To cancel, you must notify the lender in writing. Send your letter by certified mail, and ask for a return receipt. That will allow you to document what the lender received and when. Keep copies of your correspondence and any enclosures. After you cancel, the lender has 20 days to return any money you paid up to then for the financing.

Help With a Allport Arkansas Reverse Mortgage
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