Senior Lending Network

Purpose of Senior Lending Network

That's right; today's senior citizen population is growing as Baby Boomers grow older and join the ranks of the retired. The purpose of the Senior Lending Network is to help this segment of the populace to retain its financial independence. You may have seen commercials with their spokesperson, actor Robert Wagner, explaining that the Network is there to help settle seniors into retirement.

It offers assistance in both retirement planning and funding during retirement. The Network accomplishes this by educating seniors who own homes about the financial advantages of reverse mortgages. To date, the company has assisted millions in getting a better understanding of what a reverse mortgage is and how it can benefit them.

What Is a Reverse Mortgage?

Reverse mortgages grant homeowners admittance to the equity they have built in their homes over the years without the drain of monthly payments. The loan can be received in these forms:

• Lump sum
• Monthly payment
• Line of credit
• Combination of all of the above

Repayment of the loan on reverse mortgages is deferred until the homeowner no longer lives in the home.

Home Equity Conversion Mortgages

Most of the reverse mortgages are equity conversion mortgages and are insured by the Federal Government. HECM have been around the longest and are the most popular of the reverse mortgage products. HECM loans are a product of the Federal Housing Administration and a division of the U.S. Housing and Urban Development department, known as HUD. Restrictions on these loans include:

• Amount borrowed
• Required HUD counseling

For those interested in learning more about a reverse mortgage, the Senior Lending Network provides educational materials as well as a personal consultation with a reverse mortgage expert. The advisor reviews individual situations and offers assistance in educating consumers and also provides reverse mortgage services.

One thing to take into account is that the HECM offers a growth feature that allows money in the line of credit to increase on a monthly basis. If you won't need a lump sum draw when you close, this feature is worth taking into consideration. Even though HECM might offer less than other reverse mortgage products in the line of credit, it has the possibility of growing beyond what these other products can offer.

Fannie Mae Home Keeper Reverse Mortgage

Fannie Mae's Home Keeper reverse mortgage is a government-sponsored enterprise program. It works much the same as a HECM loan, but a Home Keeper reverse mortgage deals with a small number of needs not met by HECM loans. This includes individuals who:

• Own higher-valued property values
• Own a condominium
• Want to use a reverse mortgage to buy a new home.

Home Keeper reverse mortgages can offer more than HECMs due to the fact that the high end of Fannie Mae's lending limit is $417,000.

HUD Counseling

For homeowners who plan to borrow using a HECM, first they must get independent, HUD third-party counseling. HECM counselors will explain:

• Eligibility requirements
• Financial implications
• Alternatives to obtaining a HECM
• Provisions for the mortgage becoming due and payable

Once a homeowner completes HECM counseling they are left alone to make an independent but informed decision regarding the loan.

Qualifying for a Reverse Mortgage

These reverse mortgage products may have specific requirements. Here are a few that may apply:

• Homeowner and any co-borrower must be at least 62 years of age.
• If applying for a Home Keeper Mortgage, homeowner must occupy the home as their primary residence.
• Homeowner must have a low mortgage balance or own their home free and clear.
• Homeowner must attend pre-application reverse mortgage counseling before applying for the loan.

Other Considerations

Lenders base the amount of the loan on:

• Borrower's age
• Number of borrowers
• Adjusted property value

Flexibility and Peace of Mind

Applying for a reverse mortgage is a big decision, and there are many variables involved. Before inking the deal, remember:

• Payment options can be changed at any time over the life of the loan for just a small fee.
• You nor your estate will ever owe any more than your property's value.
• No part of a reversed mortgage loan is due until you move out of your home, or if the terms and conditions are violated. Plus, if you decide you want to prepay or even partially repay the loan, you can do so without penalty.

With this flexibility comes peace of mind for those seniors looking to cash in on the value of their home to ensure that they can maintain their independent lifestyle.