With reverse mortgage, you would be retaining the title or ownership of the home. Contrary to popular belief, Sun West Mortgage would never, at any point would own a home and despite the last surviving spouse vacates the property permanently.
Your eligibility for funds as a borrower would be dependent on your age, rate of interest, home value and upfront costs. The older person would be receiving more proceeds.
There has been a limit on the specific amount of funds that a borrower could access during the initial 12 months after closing. In case a borrower has been eligible for a specific loan amount, not more than 60% of the total loan could be accessed. However, in the thirteenth month, the borrower could take as little or remaining proceeds as he or she wishes. There have been exceptions to 60% rule.
The borrower could withdraw slightly more if there has been an existing mortgage or other liens on the house, which should be paid off. It would be pertinent for the borrower to withdraw enough money for paying off these obligations along with another 10% of the maximum amount allowed. It would be an additional 10%.
Sun West Mortgage would be required to conduct financial assessment of every reverse mortgage borrower to make sure the person could easily afford to reside in the property, paying for future property taxes along with homeowners insurance for the duration of the loan.
The lender would be required to go through the income streams of the borrower. It would be inclusive of pensions, Social Security and investments. Reverse mortgage borrowers should be providing tax returns along with bank account statements for assisting in documentation of income and expenses.
In case, you have any kind of credit issues, it should be explained thoroughly. The lender would be able to determine whether the explanation would be adequate to help you get the reverse mortgage approved.