Modular home financing for senior citizens is available through a program called FHA reverse mortgage. Seniors can apply to this program as long as they meet the requirements and are eligible.
A FHA reverse mortgage application process generally takes about 30-45 days from start to finish and has five major steps. However, the longest part of the reverse mortgage loan process is the decision-making process that leads up to the application.
The average FHA reverse mortgage applicant his application process by typically researching about the reverse mortgages using resources such as this site. He will request information by signing up in our newsletter. The homeowner may invest one to two months meeting with the specialist in person and reviewing the good faith estimate and other loan documents.
Initial Application for FHA Reverse Mortgage
The application legally authorizes the lender to begin the application process but the lender cannot incur any costs on your behalf until counseling is completed. The application is not binding and can be canceled at any point during the process. The application will specify the reverse mortgage fees, interest rates, and loan amounts.
Reverse Mortgage Counseling
Even though the application has been completed, the lender is not legally permitted to incur any costs on the applicant’s behalf until the applicant has submitted a signed HECM Counseling Certificate. This is proof that the applicant has completed the mandatory counseling session with a HUD-approved counseling agency. The counseling can be completed before or after the initial application in most states.
Appraisal for FHA Reverse Mortgage
The appraisal establishes the legal value of the applicant’s property. The FHA reverse mortgage appraisal must be conducted by an FHA-approved appraiser and it must follow a specific FHA format. This means that even if a homeowner has already had an appraisal, it will most likely have to be re-appraised at this point in the process.
Underwriting for FHA Reverse Mortgage
The lender will confirm the applicant’s legal ownership of the modular home by conducting a title search and purchasing title insurance. They will also work with the applicant to clear up any issues with trusts, unpaid liens against the title, bankruptcies, etc. Once the lender has finished underwriting and has approved the application, it’s status will be changed to “clear to close”. This means that everything has been completed and the final closing date can be set.
Closing of FHA Reverse Mortgage
The lender and the applicant set a closing date where a notary or attorney meets with the applicant to sign the final closing documents. This is the applicant’s opportunity to review the closing documents to make sure that the interest rate, fees, and loan amounts are the expected amounts. Once signed, the application goes into a three-day ”right of rescission” period. This means that even though the closing has taken place, the applicant can still cancel the application with no penalty for three business days after the closing.
Immediately after this waiting period, the title company will issue a check to the homeowner if proceeds are available from the reverse mortgage. If the applicant was using a reverse mortgage to pay off an existing mortgage, the title company will also send the mortgage payoff amount to the lender.
In case you still have question about modular homes, you may contact Legendary Homes Inc in Jackson, Michigan. A representative will be happy to assist you. Meanwhile you can check our modular home price sheets by signing up to our blog
