Sellens Real Estate Lending

Manufactured Home Reverse Mortgage Loan Programs

You can obtain an FHA approved Reverse Mortgage for your Manufactured Home.

mfg imagesA Reverse Mortgage is a Loan Program that allows you to use the Equity in your Home to pay your Mortgage Payments. The Reverse Mortgage is available for your Manufactured Home.

You may be able to receive cash in addition to having NO Payments to make on your home. The Primary Reverse Mortgage is an FHA/HUD backed loan. That is to say that you are guaranteed to receive the Loan Payment Program you select.

The Reverse Mortgage loan is for people with limited or fixed income that want to stay in their home, payment free, until they sell the home or pass away. You can take out a Reverse Home Mortgage Loan, and still be free to sell your home at any time.

It is a fabulous program for certain Senior Citizens, and I work with Seniors a good deal.

For an Example of how a Reverse Mortgage Works: My client’s name was Frank. He lived in the mountains in his manufactured home and he owned his home worth $160,000. He only owed $33,000 on his house.

But, cash flow was a problem for him. He had limited fixed income with Social Security. He paid $300 a month for his manufactured home, plus taxes and insurance.

The Reverse Mortgage on his manufactured home could help him in this way:
1) He would no longer have the $300 a month payment. That would be paid from the equity in his manufactured home.
2) He could either receive another $300 a month, or take $50,000 in cash, or use a $50,000 credit line.

He decided to use the Credit Line because he had Government Medical Insurance that would stop paying for his Medical Bills if he had too many assets. This way he had it all.

Because of obtaining a Reverse Home Mortgage he could live in his home for the rest of his life, never have to make principal and interest payments, and have lots of financial freedom because he had a credit line of $50,000 to pay for the items needed or wanted.

The Government Backed Reverse Mortgages changed the way he lived his life, and very much for the better.

This is a quote from the California Association of Mortgage Brokers regarding pending legislation for Reverse Mortgage Loans and Borrowers. We hope very much that this legislation passes. (9/06)
The third piece of legislation, SB 1609, introduced by Senator Joseph Simitian, D-Palo Alto, helps protect seniors when they enter into reverse mortgages. “It is our responsibility to help protect those who are most vulnerable in our society,” Governor Schwarzenegger said in a statement.

The bill prohibits a reverse mortgage lender from accepting an application or assessing any fees until the borrower has received independent counseling regarding the loan. It also prohibits a lender from requiring a borrower to purchase an annuity as a part of the reverse-mortgage transaction and requires a reverse-mortgage contract to be translated into Spanish, Chinese, Tagalong, Vietnamese or Korean if the contract was primarily negotiated in one of those languages.

Typically, a reverse mortgage allows homeowners 62 and older to receive either monthly payments or one lump sum from the property’s equity without having to sell the property or make monthly repayments.

The reverse mortgages also don’t have to be repaid for as long as residents do not move, but they must be repaid in full, including all interest and other charges, when the last living borrower dies, sells the home or permanently moves away.

The borrowers continue to own their homes and are responsible for property taxes, insurance and repairs. “Older Californians considering reverse mortgages as a source of retirement income will be provided greater consumer protections as a result of SB 1609,” Corporations Commissioner Preston DeFauchard said in a statement.

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