Having a steady income is one of the prerequisites of leading a hassle free. Till the time one has a regular job, getting regular money is not the issue, but once a person reaches his retirement age things can get really difficult, especially if some measures are not undertaken to take care of this. Reverse mortgage loan is one of the best means that can be adopted to ensure that a person is never short of finance even after retirement. Reverse mortgagee has in fact come as a blessing for all those people who want to lead their retired life without having to worry from where they will get the money to take care of their day to day needs. The department of housing and urban development more commonly known as HUD was one of the pioneers who started giving reverse mortgage loans to citizens who are above 62 years of age.
The HUD reverse mortgage loan like any other reverse mortgage loan does not need to be repaid till the time the senior person is living in the house. The basic thing about HUD reverse mortgage loan is that the house is the collateral and this enables the house owner to convert the equity of the house to cash. A person has to fulfill certain requirements before they become eligible to get the HUD reverse mortgage loan. The first criterion is that the person must be at least 62 years of age, the loan applicant must have a house or have a very low amount of mortgage that can be paid off at the closing and lastly the person must be live in the house that they want to put as collateral for the loan.
One you have applied for the HUD reverse mortgage loan, the department people will find out if the house that you have put as collateral is eligible for the loan or not. A house, to be eligible to fetch the owner the HUD reverse mortgage loan must either be single family dwelling house or a two to three unit property and the loan applicant must not only own the house but also live in that house. Just as every coin has two sides, reverse mortgage also has its own pitfalls. To take care of this one must ensure that they take measures to ensure that do not come across any problems. Make sure that the loan provider is a genuine broker and not fake who may end up charging you undisclosed fees after the transaction has been done.
A little caution on your part can go a long way in helping you take care of all these things and much more. If you opt to take HUD reverse mortgage loan, you will not face any kind of hassles as all this is taken care of by the department of housing and urban development. Finally you can also seek the advice of an attorney before you actually go about taking the reverse mortgage loan, so that you do not face any kind of legal issues in future.