Seattle reverse mortgage caters to the needs of the retired borrowers of Seattle. A reverse mortgage is different from a forward mortgage. Reverse mortgage may be used for various needs. Financial needs may include paying ones taxes, fees, paying for medical checkups or prescription drugs, for making enhancements in the infrastructure of ones building. Expenses incurred on vacation or buying a car may also be met by the reverse mortgage proceeds.
Reverse mortgage may be availed from any lender. However, Seattle Mortgage is a well-known reverse mortgage lending financial institution. Seattle Mortgage is the first bank to offer reverse mortgages. This institution is located in Washington. Seattle Mortgage was acquired by Bank of America in the year 2007 June. It mat be mentioned here that Seattle Mortgage is an arm of Seattle Financial Group (SFG) dealing with varied financial services.
Prior to processing the application for reverse mortgage, the FHA or the Federal Housing Administration makes it compulsory for the borrowers to attend a counseling session conducted by the HUD approved counselors.
This session is undertaken to fathom as to, which reverse mortgage program would be best suited for the retired personnel.
The main advantage of availing a reverse mortgage is one may apply for a loan against the house and still retain the ownership of the house and continue reside in the same premises. The loan amount may be repaid back if:
The owner/borrower plans to sell off the house
If there are chances that the borrower is intending to transfer the ownership of the house to another individual, the loan has to be repaid.
Usually, the amount disbursed constitutes 40% to 75% of the value of the mortgaged house. Of all reverse mortgage loan schemes, the Home Equity Conversion Mortgage (HECM) is the one, which is widely applied for. This scheme is insured or backed by the Department of Housing and Urban Development United States of America.