Alabama (AL) Reverse Mortgages and Loans
How do Reverse Mortgages Work?
An Alabama Reverse Mortgage / Loan is a home loan which provides the homeowner with cash payments based on home equity. Throughout the course of the loan, the borrower retains the property’s ownership. Typically, repayment of the loan is made when the Alabama property is sold or upon the homeowner’s death.
Reverse Mortgage Requirements in Alabama
- Age: Alabama borrower must be 62 or older
- HUD-approved counseling
- No income requirements
- Assets: No requirements
- Alabama employment: No requirements
- Credit score: No requirements
- Health: No requirements
Alabama Reverse Mortgage FAQs
Can I lose my home with an Alabama Reverse Mortgage?
The Bank can only foreclose on your Alabama home if you do not 1) pay your homeowners insurance, AL real estate taxes, any HOA fees, 2) keep the home in good repair 3) keep the Alabama home as your primary residence. You never have to make a mortgage payment.
What if I already have an Alabama mortgage?
First, your current mortgage and any other liens against the property in Alabama will be paid off. As long as you have enough equity to do this, a Reverse Mortgage would work for you.
Will an Alabama Reverse Mortgage cause me to pass debt on to my heirs?
A Reverse Mortgage in Alabama is a non-recourse loan. There is mortgage insurance, which is a Federal requirement, which will pay off the difference from the value of your home to what you owe. No one comes out of a Reverse Mortgage owing more than the value of their home. If the value of the Alabama home is greater than what is owed, the heirs inherit the additional money after the loan is paid.
Are Alabama (AL) Reverse Loans high-risk?
A number of safeguards have been built into the program, including mandatory HUD-approved counseling in Alabama, payment guarantees, capped interest rates, advanced disclosures, a three-day rescission period and a non-resource limit.
Contact the Alabama Reverse Mortgage Experts
Apply now or contact the Alabama Reverse Mortgage experts at Home Point Financial to learn more about reverse mortgages in Birmingham, Montgomery, Mobile, Huntsville and throughout Alabama.
