Covid has forced many a 55 year-old and over into early retirement with only one source of income-social security. Worse, businesses lost that would've been sold at a profit mean extended work years or back to work for over 65 'seniors.' FINRA, the financial industry regulatory authority, has added reverse mortgages to home equity for income. You can receive a lump sum at closing and make no payment on a mortgage once it's closed except for taxes, insurance and HOA payments.
With the cost of living adjusted, some cash to help with home maintenance and a remaining line of credit for those with a lot of equity, life becomes much more comfortable. Your current mortgage and/or home equity loan is paid off through the reverse mortgage.
While COVID has caused job losses, business closures and delayed plans for many, home equity has risen the most in history in one year. While values may not continue to rise and, may indeed drop for all we know, you will never owe more than what your home is worth.
Call for a consultation if you are even curious about how the reverse mortgage can help your income. Do not confuse it with newer 'equity share' loans that have targeted homeowners everywhere. Reverse Mortgages are FHA guaranteed loans now started under Ronld Reagan in 1987.
Did you know that...
While some collection agencies will agree not to report medical collection accounts that are paid off immediately, others refuse to do so. And some bill collectors will use the threat of credit report damage to try to get patients to pay up, even if the bill itself is disputed.
Here are some interesting myths and facts about medical collections!
Myth: As long as I am making payments on a medical bill, it can't be sent to collections.Fact: Making payments won't necessarily keep the bill out of collections. Even if you are making regular payments, they need to be a certain amount to prevent being turned over. Of, if you are under a payment arrangement but are late (even by just a few days) your bill may go to collections. If you leave any balance unpaid, there's a good chance it will go to collections.
Myth: When it comes to credit scoring, medical accounts are treated differently than other types of collections accounts.Fact: The credit scoring formula does not distinguish between medical and non-medical collection accounts. All collection listings are derogatory and will affect your credit score the same way as other collections. Some creditors have been known to be more lenient when it comes to medical debt, even though the credit scoring formula will not.
Myth: I'll need to pay off medical collection accounts to improve my credit.Fact: Paying your bills is the responsible thing to do, but don't do it expecting drastic changes to your credit score. Collection accounts damage your credit score, paid collections aren't as detrimental but they're still negative. The negative listing can stay on your credit file for up to 7 years.
Bottom line, if you want to be ready to buy a home or refinance, call me and I'll help you with credit, loan type and walk you through it.
You can now do this at 55 years old! Read it and call for help.
Real Life Transaction!
Borrower Retired Due to COVID
Benefit of Reverse Loan:
· Paid off existing mortgage, saving $1,754 ($105,000 over 5 years!) in monthly payments*
· Cash Out $36,557
· Line of Credit for $93,521
· Paid property taxes at close saving $2,395.62 out of pocket**
· Closed in 45 days
Thinking about a reverse mortgage but not sure? Call me at 562-619-2058
Anne E James is a licensed mortgage broker with 25 years experience in lending. NMLS # 254859
One of the benefits of VA loans is that they allow veterans to secure home loans with lower interest rates and lower qualifications than a traditional loan. Even with these lower qualifications, however, VA loan applicants sometimes still need a co-signer to qualify. If you fall into this category, it’s a good idea to understand who can co-sign on your VA loan and how it might affect your odds of qualifying for that loan. Fortunately, Reliance Mortgage Service Inc, is well-equipped to answer any of your VA loan co-signer questions.
Individuals who can co-sign on VA loans include:
In short, it’s perfectly normal for a VA loan borrower to need a co-signer to qualify for a loan. If this describes you, the more you know about who can co-sign for you and how it will affect your loan, the more of a head start you’ll have in the process.
Since the VA loan co-signer application process can sometimes be a daunting one, we have provided below two of the most frequently asked questions regarding the use of co-signers on VA loans.
VA guidelines clearly specify who veterans can use as co-signers on VA loans and who they can’t. First, the VA permits legally married spouses to co-sign on a loan. Those veterans who are unmarried can get a fellow veteran who is unmarried to co-sign on their VA loan. A third option, which is only available through some lenders, allows veterans to use an unmarried, non-military individual as their co-signer, but this comes with a catch: the VA will consider only the veteran’s property in what they can “guarantee,” not the co-signer’s. In other words, using this option can limit how much you qualify for. Since not every lender will allow this third option, if you find yourself in this category, we strongly recommend that you find out if your lender handles this situation before you begin the loan application process.
Co-signers can often make the difference in securing a VA loan or not. Just as your financial information and credit history is taken into account when determining if you qualify and what rates you’ll receive, your co-signer's information must also be scrutinized. How will the VA look at your and your co-signer’s information? For one thing, VA loans don’t rely on high credit scores to determine eligibility. Instead, they look at your and your co-signer's most recent 12 months of credit history, while being less strict about credit scores, bankruptcies, and foreclosures.
If you find yourself needing a co-signer to qualify for a VA loan, know that the ability to include a co-signer has allowed thousands of veterans in you area to secure a VA loan. Fortunately, now that you know who can and cannot act as your co-signer – whether your legal spouse, a fellow unmarried veteran or an approved unmarried non-veteran – you can avoid unfortunate surprises and get a head start on identifying who your co-signer will be.