Benefits Of A Reverse Mortgage
The first thing that happens with a reverse loan is that it pays off any existing loans you may have against your manufactured home thereby eliminating your mortgage payment.
Here is a benefit list:
- A reverse mortgage eliminates your mortgage payment
- Reverse mortgages also allow you to use the funds however you like
- The reverse mortgage has multiple pay out options for any funds left over after paying off your existing mortgage loans / liens , a line of credit, or monthly payments sent to YOU instead of vice versa)
- You still own your home when you do a reverse mortgage, just like if you have a regular loan
- You can still leave your mobile home or manufactured home to your kids or heirs
- You dont have to pay income taxes on any funds you receive
- A reverse mortgage is a non recourse loan
- When your heirs inherit your mobile home after you pass away, they dont have to stress out about making a mortgage payment while they settle your affairs
Want more info about reverse mortgage? Call us at 492-2252 x704 or Email us at
Hud / Fha Reverse Mortgage On A Mobile Home Eligibility Requirements:
- As previously noted, your mobile home should be built on June 15, 1976 or newer to get a reverse mortgage
- Your mobile home needs to be detitled and taxed as real estate to be eligible for a reverse mortgage
- The tongue and axel need to be removed from your mobile or manufactured home
- Your mobile home needs to be secured to a permanent foundation
- The mobile home can only be in one location and cant move from one piece of land to another
- Permanent utilities need to be hooked up to your manufactured home
- There should be some comparable mobile home sales nearby within the last 6 months
- The mobile home should have HUD tags to get a reverse mortgage
- HUD reverse mortgage rules also state the mobile home should have at least 400 square feet of living space
- Your home cannot be situated in a flood zone to get a reverse mortgage
- Youll need to have an all weather roadway to the site
- The mobile home needs to be your primary residence and not an investment, rental, or second home to get a reverse mortgage
Want more info about reverse mortgage? Call us at 492-2252 x704 or Email us at
Will My Children Lose Their Inheritance Will There Be Equity Left For Them
The home should continue to appreciate in value the longer you live there. When the home is sold, the loan is repaid and all remaining equity goes to you or your heirs. If your heirs choose to keep the home, they must refinance it into their own names. If they choose to sell the home, they may have up to 12 months to complete the sale. Remember, the FHA insures the reverse mortgage, so if the loan consumes all the equiy and the home is no longer worth what is owed, the insurance makes up the difference – not you or your heirs. The term used is non-Recourse Insured.
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Living The Goodlife In Retirement
GoodLife Homeloans seeks to make reverse mortgage funding simple and accessible for a diverse population of homeowners. Were here to help you figure out if a home equity conversion mortgage is a good fit for your retirement plans.
Our team is dedicated to assisting seniors in living The GoodLife in Retirement if you have any additional questions or are ready to apply for a HECM loan, please contact one of our Reverse Mortgage Specialists.
The Four Types Of Manufactured Homes
Technically, there are not four types of manufactured homes. However, there are four types of factory built homes. Im referring to homes not built or framed on the home site out of wood, stucco, etc.
The first type is a manufactured home built before June 1976
While this is similar to what is today technically called a manufactured home, its a mobile home. For all intents and purposes, a home built in January of 1976 might LOOK just like one built in July of 1976. However, the main difference is that if built after June of 1976, they had to be built to HUD standards. If the manufactured home was built before June 1976, it wont have HUD tags. Can you get a reverse mortgage on a manufactured home built before June 1976? Sorry, the answer here is no. HUD will not insure a reverse mortgage for a mobile home.
The second type is a manufactured home built after June 1976 .
This should have the HUD tags on it. This is a manufactured home . So, you might be wondering Can I Get A Reverse Mortgage On A Manufactured Home built after June 1976. The answer is yes, you probably can get a reverse mortgage for your doublewide manufactured home.
Here are the basic guidelines:
The third type is a manufactured home built after June 1976 .
This type of home should also have a HUD tag on in. The main difference between a single wide and a double wide pertains to the question Can I Get A Reverse Mortgage On A Manufactured Home if its a single wide built after June 1976?.
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Characteristics Of Manufactured Homes
In 2010, there were 50,000 new manufactured homes placed in the United States, according to U.S. Census data, with the majority located outside of manufactured home communities. The South by far leads all other regions in the number of manufactured homes, with 34,000.
The average sales price of a manufactured home in 2010 was $62,800, according to Census data, the lowest since 2007, when prices peaked at $65,400. The Western region led sales prices with an average of $79,100.
Creating A Winning Strategy
If youre interested in paying for a second home with the reverse mortgage on your primary residence, you should research reputable reverse mortgage lenders who service your area AND try to enlist the help of a professional financial advisor. When you work with experienced professionals, they can help you develop a homeownership strategy that will work best for your situation.
For example, you may be able to take out a reverse mortgage to simply lower the payments on your existing primary residence, thus freeing up money to make payments on a conventional loan for a second home. Or, you may be able to use the lump sum proceeds from your reverse mortgage to pay in full for a vacation property.
Again, these scenarios will not be ideal for everyone. Talk to a reverse mortgage specialist at Alpha Mortgage or contact a homeownership counselor for more information.
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Are You A Get Down And Getter Done Entrepreneur Or Just Another Me To Re Agent Waiting For Things To Happen
Well, If Youre Tired of Waiting Around For Things To Happen Check Out What Just Might Happen In The Next RE Boom.
Tens of thousands perhaps hundreds of thousands of old Trailers and Mobile Homes will be removed from Resident Owned Mobile Home Parks in the next few years and brand new Manufactured Homes will be installed turning these once blighted ole Trailer Parksnto gentrified upwardly mobile Manufactured Home Communities
Above Left: Old Circa 50s & 60s 500sf 1+1 single wide trailers with asphalt driveway in aging and dilapidated trailer park. Right: Old trailers were removed and new 960sf 1/2 Manufactured home 1/2 site built second story results in 3 bdrm 2 bth home. Concrete driveway replaces old asphalt driveway. Thus far half of the homes in this development have been removed and replaced with new HUD approved homes. This park is currently going through the Condo conversion process. Hence, once completed it will be possible for these resident homeowners to obtain a land/home fully amortized 30yr loan.
This could be one of the sparks that ignites the next RE explosion and who would ever believe that it just might happen with Manufactured Housing?
The only solution is to replace the ineligible home with a new HUD compliant Manufactured Home and obtain permanent FHA financing for a forward or reverse mortgage when the installation is complete.
Westwood WC23 www.silvercresthomes.com
Good Luck in 2010 and May Your New Home Experience Begin Indoors
Manufactured Home Requirements For Inverted Mortgages
The Home Equity Conversion Mortgage Program provides an extensive list of qualified home requirements to qualify for a reverse mortgage.
There are a number of requirements that a manufactured home must meet to qualify for an inverted mortgage. AAG provides a full list of specifications for obtaining a reverse mortgage on a manufactured home:
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Property Requirements For A Reverse Mortgage
Lets talk about your home. Its the place where youve made countless memories, celebrated holidays, created longstanding traditions, and maybe even raised a family. But as you settle into retirement years, your home can become even morea welcomed source of cash flow.
A Home Equity Conversion Mortgage also known as a reverse mortgageallows you to tap into a portion of the equity in your home to use as you wish. With an additional source of cash flow, youll improve your income and have more cash available to do more of the things you love.
But like any other loan, there are some qualifications that must be met to be eligible.
Lets start with the most obvious home qualifications for a reverse mortgage.
Type of Property
When it comes to the HECM, you first need to see if your home property qualifies. According to the US Department of Housing and Urban Development , the most common type of property eligible for a reverse mortgage is a single-family home. However, if your property is a multi-family home, you may still qualifyas long as one of the units is your primary residence.
Other eligible property types for a reverse mortgage include manufactured homes and HUD-approved condominiums. If you live in one of these types of dwellings, youll want to check the Federal Housing Administrations website as well as HUD to confirm your residence is eligible.
Taxes and Insurance Payment
Manufactured Home Requirements For Reverse Mortgages
The Home Equity Conversion Mortgage Program has an extensive list of requirements for manufactured homes to be eligible for a reverse mortgage.
There are several requirements that a manufactured home must meet in order to qualify for a reverse mortgage. The AAG provides a complete specification list for obtaining a reverse mortgage on a manufactured home:
1. Your home must have a HUD seal affixed on the outside of the home, which proves that the home conforms to the Federal Manufactured Home Construction and Safety Standards, under HUD code.
2. Your home must be produced after January 1, 1990.
3. Your home must be taxed and classified as real estate and must be designed to be used as a dwelling with a permanent foundation built to FHA requirements.
4. Your home must be in its original location. The only acceptable move the home must have encountered was the move from the factory to the dealer and then to the site. Once on the site, it must have remained there permanently.
5. Your home must have at least a minimum floor area of 800 square feet.
6. Your home must not be in a condominium association.
7. Your home must be built and must remain on a permanent chassis.
8. Any wheels, axles or a hitch must be removed from your home.
9. Your home must be permanently attached to the property.
10. Your home must have acceptable perimeter enclosure .
11. Beneath your home, the finished grade must be at or above the 100-year flood elevation.
15. Your home must be double wide or bigger.
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Mobile Vs Manufactured Homes
Many customers use the term mobile home interchangeably with manufactured home. Wikipedia explains the difference well:
Technically, a mobile home and manufactured home are different entities. A mobile home is always constructed prior to June 1976. Homes constructed post June 1976, are almost categorically known as manufactured homes, meeting FHA certification requirements, and come with attached metal certification tags. Mobile homes permanently installed on owned land are rarely mortgageable, whereas FHA code manufactured homes are mortgageable through VA, FHA, and FNMA.
Once the tongue and axle are removed, the home is placed on a permanent foundation, and utilities are installed, it is no longer a mobile home.
Can You Obtain A Reverse Mortgage On Mobile Home
- The youngest borrower must be aged 62 years or above.
- No monthly payment is required as long as you occupy the residence.
- The loan is paid off from the proceeds of the sale of the mobile home or by other means when the home no longer remains your primary residence. Your heirs or beneficiaries will not have to pay down the debt.
- There is no income, medical or credit requirements.
- You can receive the loan advances through different ways and not only as a lump sum amount, in the form of monthly payments or a line of credit on which interest is accrued throughout the loan term.
- Funds generated from the reverse mortgage are free from income taxes and do not influence your Social Security or Medicare benefits.
- You can pay off the outstanding loan balance on any other mortgage using a reverse mortgage line of credit. So you can retain your home throughout your life.
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Getting A Reverse Mortgage
In this case, its called a Home Equity Conversion Mortgage and it applies on all HUD-approved manufactured homes. But in order to meet the qualification to get approved by a lender, the homeowner must have closed any previous mortgage on the property or apply the funds received from the loan towards paying off any current balance in full. The money must also be used toward making repairs, paying down any delinquent taxes or insurance, and covering any fees necessary for the upkeep of the home.
Every applicant must also attend HECM counseling classes to learn how reverse mortgages work and understand the agreement they are entering into with this type of loan. The class will walk the applicant through the qualification requirements, the pros and cons of getting this loan, and help them understand how much money they can receive based on the amount of equity they have built in the home. The money that is paid back will never exceed the value of the manufactured home as recent regulations have forbid this from happening by way of language included in every loan agreement of this nature.
Can You Get A Reverse Mortgage On A Condo
- Eligible senior homeowners can get a reverse mortgage on a condo. However, certain conditions have to be met first.
- On top of satisfying HUD reverse mortgage requirements, borrowers must also own and live in a FHA-approved condo.
- An appraisal will have to be completed in order to determine if a condominium unit qualifies for a reverse mortgage.
- Updates to the reverse mortgage guidelines regarding condos include spot approval, mixed-use projects, occupancy rations, and insurance maximums.
If you are eligible for a reverse mortgage, you may be able to obtain one on a condominium unit depending on certain rules and restrictions. Reverse mortgages allow seniors age 62 years and up to tap into a portion of their home equity and convert loan proceeds into disposable income during retirement. Because of the way that reverse mortgages work, there are specific rules that pertain to the types of properties that are eligible for this government-backed program.
Also known as a home equity conversion mortgage , reverse mortgage loans are insured by the Federal Housing Administration and overseen by the Department of Housing and Urban Development . Until recently, it was difficult to get a reverse mortgage on a condo but, fortunately for senior homeowners, the guidelines have changed. Thanks to the revised policy that went into effect on October 15, 2019, it is now substantially easier to get approved for an FHA condo loan once the revised policy goes into effect on .
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