The Kearney office of CharterWest National Bank started doing reverse mortgages in 2006 in addition to all of the other FHA forward mortgages, VA, conventional and rural development mortgages.
A reverse mortgage is a loan that allows someone aged 62 or older to borrow some of the equity of their home to:
- Payoff an existing mortgage;
- Establish credit for unplanned expenses;
- Payoff vehicle loans, medical bills or other debts; and
- Improve monthly cash flow with the elimination of the current home loan and/or monthly payments sent to the senior.
Both fixed rate or variable rate loans are available and no restrictions are placed on the funds. Homeowners also get to keep the title to their home just like with a traditional mortgage.
Reverse mortgages are a collateral based loan. Should the home sell for less than what is owed, FHA has to eat the difference. They could not come back against the estate and try to get money from the heirs, unlike with forward mortgages.
For more information, call CharterWest National Bank at 308.234.2220.