Unemployment and Reverse Mortgages

Being laid off suddenly can feel like being tossed off a cliff without a parachute. How can you expect to pay your bills, eat, or keep a roof over your head without a job? Even if you’ve managed to accumulate some savings, that money can only last so long if it takes a long time to find employment.

Depending upon how desperate you are for cash, you may be considering tapping your home equity. Without an income, however, you won’t have much success trying to refinance. But if you are 62 or older you might be able to qualify for a reverse mortgage.

Reverse Mortgage Proceeds

A reverse loan won’t allow you to cash out all your equity. The amount of money you can receive depends upon the value of your home, which is determined with an appraisal. The reverse home mortgage payout also depends upon your age. The older you are, the more money you qualify to receive. Current interest rates also play in a role in determining how large a reverse mortgage you receive.

Reverse Loan Counseling

Before you can apply for a reverse loan, you must receive counseling from a qualified housing counselor. Although you may be convinced a reverse mortgage is the only thing that can help you during your unemployment, a knowledgeable counselor can discuss other alternatives that may be able to help your situation. For instance, the government’s Home Affordable Modification Program (HAMP) recently announced that unemployed homeowners could qualify to have mortgage payments temporarily suspended or reduced.

It’s important to get all the facts about reverse mortgages so you can make an informed decision about whether to apply for one. Familiarize yourself with reverse mortgage guidelines then begin comparing loan quotes here.

This entry was posted on Tuesday, July 13th, 2010 at 9:35 pm and is filed under Reverse Mortgage . You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.