You may qualify for a
Costs for a reverse mortgage under the Home Equity Conversion Mortgage "HECM" are capped. These costs may be financed into the mortgage. Federal regulations mandate that your home be structurally sound, and comply with all home safety codes, in order to qualify for a reverse mortgage.
Covers a lender's operating expenses include: marketing, overhead, and processing. Federal guidelines for the origination fee are 2% of the first $200,000 or the lesser of the home value or county lending limit and 1% on the remaining balance. To which will not exceed a cap of $6,000.
Borrowers are charged a MIP equal to 2 percent of the maximum claim amount or home value. Whichever is less. And a annual premium equal to 0.5% of the loan balance. This insurance Guarantees... If the company managing your account commonly called the loan servicer goes out of business, the government will step in and make sure you have continued access to your loan funds. You or your heirs will never owe more than the value of your home when the HECM is repaid.
Generally range between $300-$400 and is performed by a certified appraiser. Designed to assess a responsible current market value of your home.
An appraiser will also check for major structural defects, such as a bad foundation, leaky roof, or termite damage. All property defects, you must be completed by a contractor. A second inspection usually $50-$75 must be made by the same appraiser to insure the repairs have been completed properly. The cost of the repairs may be financed in the loan. The repairs may be completed after the reverse mortgage is obtained.
Other closing costs commonly included are:
The service fee set-aside is an amount of money deducted from the available loan proceeds at closing to cover the projected costs of servicing your account. Federal regulations allow the loan servicer to charge a monthly fee of $30 to $35. Typically the set-aside can amount to several thousand dollars.