Funding Options

There are many funding opportunities available when it comes to purchasing real estate. You may not be aware of some options or why certain choices would be advantageous to you. Our goal is to highlight these funding opportunities as an aid to making an informed and educated decision.

Contact us at Inner Banks Living if you have questions about any of the funding options described below.

Reverse Mortgages

 

People are becoming more and more familiar with Reverse Mortgages.
They have been around for decades but it wasn’t until recent that folks started utilizing them. In fact the popularity of Reverse mortgages has increased by over 700% since the year 2000.

But what is a reverse mortgage? How does it work? Is it a viable option for you when it comes to purchasing additional real estate?

Simply put, a reverse mortgage is the opposite of a traditional mortgage. It allows you to borrow back equity from your primary residence.

On the front end of a traditional mortgage you have a large debt and little equity. As time goes by you pay down the loan as equity increases in your property. At the end of a traditional mortgage you have no debt and all equity.

A reverse mortgage is just the opposite. At the front end of a reverse mortgage you have a large amount of equity and no (or little) debt. It allows you to borrow against the equity in lump sum or in installments.

A reverse mortgage is not paid back until you move out or sell your property. There is no income verification or credit checks to get a reverse mortgage. A reverse mortgage is not a home equity loan. There are fees associated with reverse mortgages similar in nature to a traditional mortgage.

The Department of Housing and Urban Development’s (HUD) Federal Housing Authority (FHA) created one of the first reverse mortgages. The Home Equity Conversion Mortgage (HECM) which began in 1989. It is by far the most popular reverse mortgage product available today and can only be obtained through a FHA approved lender. There are also a variety of conventional (non-government backed) programs as well.

Certain requirements must be met in obtaining a reverse mortgage. You have to be at least 62 years old and have your home completely (or very close to) paid off. It is possible to put the power of the equity you currently have in your home into the future purchase of real property.

Contact Inner Banks Living
today to find out more!

Sources:

Department of Housing and Urban Development( HUD): www.HUD.gov

American Association of Retired Persons (AARP): www.AARP.org

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Contact Us Today

We at Inner Banks Living are here to help you.
If you have any questions about the funding options described here then feel free to contact us so we can discuss them in detail.

We are also available to discuss other funding options that may be available to you as well.

Just fill out the form below and one of our outstanding representatives will get back in touch with you via phone or e-mail.

 

 

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Inner Banks Living North Carolina