A VA reverse mortgage is a federally insured mortgage loan. The federal government guarantees the mortgage. A VA reverse mortgage is not available directly from the Veterans Administration. It is only offered by federally approved lenders.
A reverse mortgage is sometimes described as a loan with equity built into your home. The equity that you have in your home is used to pay off your mortgage and if you become disabled, the government will payout the difference.
Many veterans who live in a rural area are able to get the loan. The loan amount is determined by how much your home is worth. If the value of your home were to decrease, then you could lose out on the loan.
The government does not require you to take out a reverse mortgage. It is completely optional.
There are many advantages to getting a VA reverse mortgage. One of the main reasons why so many people look into getting this type of loan is because they know that they can count on the equity in their home.
The main disadvantage of this type of reverse mortgage is that you will need to pay taxes on the income that you make from the loan. You will have to pay a percentage of your mortgage each year. The interest will also be tax deductible, but there is a limit to the amount that can be taken out each year. The only thing that you will not be able to deduct is the interest you pay on the mortgage itself.
This type of reverse mortgage is good for people who have been in the military for more than five years. and have been in the United States armed forces for at least three or four years. The loan amount is based on the current value of your home. If you have equity built up in your home, you should qualify for this type of loan.
People that have served in the United States military and retired should talk to their local Veterans Administration (VA) office about applying for a VA loan. Most people that get this type of loan have some kind of disability. Some of these include injuries sustained in the line of duty, illnesses, and some may have been in an accident or died while serving in the military.
A reverse mortgage does not require any kind of down payment. The loan can be paid off entirely in the equity that you have in your home. You can also use the equity to pay down your mortgage and use the money for other things such as paying for a college education or to help cover living expenses.
A lot of people are worried that since they are no longer in the military that they will not be able to qualify for a reverse mortgage. You can speak to your financial advisor or VA representative about this concern. They will be able to explain the requirements that apply to you.
In addition to the VA, you can also speak to other financial counselors. They can help you find out what other options are available to you.
There are plenty of places online that will help you obtain information about the reverse mortgage. The Internet is a great source of information, especially for those that are new to it. Once you begin searching, you will realize just how many choices are available to you.