If you have been disqualified for a traditional refinance, then use a Reverse Mortgage to qualify and pay down your loan. Many retired seniors today cannot qualify to refinance into a traditional mortgage or what is also known as a forward mortgage because of either their credit score is too low, they do not have enough income or do not have enough assets. But the good news is there is another option, a reverse mortgage.Many seniors are being declined by lenders and banks for a traditional mortgage because the criteria they are looking for does not fit into their underwriting guidelines box. But many seniors have enough equity in their homes to use a reverse mortgage to qualify. Currently, it does not matter if you have bad credit, cannot prove income or have low to no assets because with a reverse mortgage those do not matter.
With a reverse mortgage the interest rates are comparable to a traditional mortgage and in some cases the rates can be better. And you can make monthly mortgage payments just as you would with a traditional mortgage. The great news is with a reverse mortgage, you can pay off the loan on your own terms because since reverse mortgages do not require monthly mortgage payments, if for some reason you need to miss a payment it will not affect you.
The downside with a reverse mortgage is the closing costs are typically higher than a traditional loan, usually due to the fact that the loan is insured by the Federal Housing Administration (FHA). They require upfront mortgage insurance and monthly insurance with an ongoing basis. But this is the price to pay for no credit, income or assets needed to qualify.
If you have been declined by a lender or bank to refinance or purchase a home, you may want to look into a reverse mortgage for financing.
Please fill out the contact form at the right or by clicking here and have a qualified representative contact you!
Disqualified for a Traditional Refinance, then use a Reverse Mortgage
![Disqualified for a Traditional Refinance, then use a Reverse Mortgage]()
Reviewed by Merlyn Rosell
Published :
Rating : 4.5
Published :
Rating : 4.5