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

Topic: FHA Reverse Mortgage

A new FHA reverse mortgage program can help senior homeowners relocate or downsize to a new home without giving up all their savings and save them thousands of dollars in the process. They don’t even have to sell their existing home first.

Modular Home built in Michigan

The program comes at a time when many financially strapped seniors are trying to boost their monthly incomes after being hit especially hard by the economic downturn: stock portfolio values plummeted, interest on investments shrank, and costs for health care and home repairs skyrocketed. Most has a little knowledge about the FHA reverse mortgage. To learn more about the FHA reverse mortgage, here are the frequently asked questions posed by potential modular home buyers;

What is FHA reverse mortgage?

A reverse mortgage is a special type of home loan that lets you convert a portion of the equity in your home into cash. The equity that you built up over years of making mortgage payments can be paid to you.  However, unlike a traditional home equity loan or second mortgage, FHA reverse mortgageborrowers do not have to repay the FHA reverse mortgage until the borrowers no longer use the home as their principal residence or fail to meet the obligations of the mortgage.  You can also use a FHA reverse mortgage to purchase a primary residence if you are able to use cash on hand to pay the difference between the FHA reverse mortgage proceeds and the sales price plus closing costs for the property you are purchasing.

Who can qualify for FHA reverse mortgage?

To be eligible for a FHA reverse mortgage, the FHA requires that you be a homeowner 62 years of age or older, own your home outright, or have a low mortgage balance that can be paid off at closing with proceeds from the reverse loan, have the financial resources to pay ongoing property charges including taxes and insurance, and you must live in the home.

What types of homes are eligible for the FHA reverse mortgage?

To be eligible for the FHA reverse mortgage, your home must be a single family home or a 2-4 unit home with one unit occupied by the borrower. HUD-approved condominiums and modular homes that meet FHA requirements are also eligible.

Can FHA reverse mortgage be used on 2-4 unit properties?

FHA reverse mortgage can be used to finance 1-4 unit residential properties, including condominiums, modular homes and mobile homes (provided it is on a permanent foundation), along with multifamily properties. However, FHA loans are generally only reserved for borrowers who intend to occupy their properties.

Can I get an FHA reverse mortgage on a second home?

A co-borrower with an FHA reverse mortgage may be able to get another FHA loan if going through a divorce, and a borrower who outgrows their existing home may be able to get another FHA loan on a larger home, and maintain the old FHA loan on what would become their investment property.

Does FHA Reverse Mortgage require mortgage insurance?

Yes. The FHA reverse mortgage requires the borrower to pay for mortgage insurance.

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

Topic: FHA Reverse Mortgage

What is the FHA reverse mortgage? How will the senior modular home owners benefit from this? What are the requirements to successfully apply on this type of loan?

A 62 year old or older can be part of the FHA’s Home Equity Conversion Mortgage (HECM) program as long as he owns the modular home, paid the mortgage or the mortgage down payment, and is currently living in the said modular home.  The HECM is also called FHA’s reverse mortgage program. The program enables you to withdraw some of the equity in your modular home.

You can also use a FHA reverse mortgage to purchase a primary residence if you are able to use cash on hand to pay the difference between the HECM proceeds and the sales price plus closing costs for the property you are purchasing.

How the FHA Reverse Mortgage Works

Before deciding whether FHA reverse mortgage is right for you, you need to consider a number of factors.  First you need to meet with the FHA counselor who will discuss the program to you. You will be given the requirements for eligibility, financial implications and other alternatives when applying for the FHA reverse program. Counselors will also discuss provisions for the mortgage becoming due and payable.  Upon the completion of FHA reverse mortgage counseling, you should be able to make an independent, informed decision of whether this product will meet your specific needs.

Once you have reached a decision and have met the borrower and property requirements, you can look for FHA- approved lender to apply for the reverse mortgage.  You can search online for a FHA-approved lender or you can ask the FHA reverse mortgage counselor to provide you with a listing.  The lender will to discuss other requirements of the HECM program, the loan approval process, and repayment terms.

Requirements for the FHA Reverse Mortgage

As a borrower you must be 62 years of age or older. You should own the property outright or paid-down a considerable amount and occupy the property as your principal residence. The FHA also requires you not to be delinquent on any federal debt. As a modular home owner applying for the FHA reverse mortgage, you must have financial resources to continue to make timely payment of ongoing property charges such as property taxes, insurance and  homeowner association fees, etc.

Another set of requirements ensures that your property conforms with all the FHA property standards and flood requirements. Single family home or 2-4 unit home with one unit occupied by the borrower is required. Modular home should follow and meet the FHA requirements before, during and after construction.

And as for the financial requirements, the modular home owner applying for the FHA reverse mortgage must present a verified copy of his income, assets, monthly expenses and credit history. Timely payment for real estate taxes, flood and hazard insurance premiums will be verified. These factors help the FHA representative gauge the borrower’s capacity to pay later on.

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

Topic: Modular Home and FHA Reverse Mortgage