For veterans looking to access the equity in their home, a reverse mortgage can be a valuable financial tool. Reverse mortgages can provide a source of funds for unexpected expenses or to supplement retirement income, without requiring the homeowner to sell their home or make mortgage payments. In this article, we will explore the best reverse mortgages for veterans, including the products, fees, and eligibility requirements.
Home Equity Conversion Mortgage (HECM) for Purchase
The Home Equity Conversion Mortgage (HECM) for Purchase is a reverse mortgage product designed specifically for veterans who want to purchase a new home. The HECM for Purchase allows veterans to use the equity in their current home to purchase a new home, without making mortgage payments on the new home.
To be eligible for the HECM for Purchase, veterans must meet certain requirements, including:
Be at least 62 years old
Have enough equity in their current home to qualify for the loan
Meet credit and income requirements
Use the new home as their primary residence
Veterans Affairs (VA) Reverse Mortgage
The Veterans Affairs (VA) does not offer its own reverse mortgage product, but it does provide certain protections and benefits for veterans who use a reverse mortgage. Veterans who use a reverse mortgage can access a range of benefits, including:
No mortgage insurance premiums
No up-front or monthly fees
No prepayment penalties
Reduced interest rates for veterans with disabilities
Veterans who use a reverse mortgage can also use the funds for a range of purposes, including medical expenses, home repairs, or to supplement retirement income.
American Advisors Group (AAG) VA Reverse Mortgage
American Advisors Group (AAG) is a leading provider of reverse mortgages, with a range of products and options for veterans. AAG offers both HECMs and proprietary reverse mortgages, with a range of payment options and flexibility.
AAG also offers a VA reverse mortgage product, designed specifically for veterans. The AAG VA reverse mortgage offers a range of benefits, including:
No mortgage insurance premiums
No up-front or monthly fees
No prepayment penalties
Reduced interest rates for veterans with disabilities
AAG also offers a range of resources and tools for veterans considering a reverse mortgage, including a calculator to estimate how much you may be able to borrow.
Finance of America Reverse (FAR) VA Reverse Mortgage
Finance of America Reverse (FAR) is another leading provider of reverse mortgages, offering both HECMs and proprietary reverse mortgages. FAR offers a VA reverse mortgage product, designed specifically for veterans.
The FAR VA reverse mortgage offers a range of benefits, including:
No mortgage insurance premiums
No up-front or monthly fees
No prepayment penalties
Reduced interest rates for veterans with disabilities
FAR also offers a range of resources and tools for veterans considering a reverse mortgage, including a calculator to estimate how much you may be able to borrow.
In conclusion, for veterans looking to access the equity in their home, a reverse mortgage can be a valuable financial tool. While the specific requirements and benefits of each product will vary, veterans should carefully evaluate the costs and potential benefits of a reverse mortgage before making a decision, and should consult with a financial advisor or counselor if necessary.