Reverse Mortgage South Carolina with Cain Mortgage Team
Are you about to retire from work and you’re putting things in place to have a comfortable retirement? If so, a reverse mortgage in South Carolina is an option you might want to consider. It’s possible to get qualified for a reverse mortgage if you are over 62 years, and you own a home with adequate home equity. As a homeowner, a reverse mortgage allows you to eliminate your mortgage payment or receive a lump sum or cash payments based on your equity.
How does reverse mortgage work in South Carolina? With a reverse mortgage, you’re not required to make any monthly mortgage payments as long as you stay in the house, and you continue to meet your usual obligations. These obligations include payment of your property taxes, maintaining your property, plus homeowners’ insurance.
South Carolina Reverse Mortgage Payments
Reverse Mortgage payments can be made to the homeowner either as a lump sum, periodic advances through a line of credit, as a monthly payment as long as the borrower still resides in the home, or as a combination of any of them.
Reverse mortgage rates in South Carolina
As a homeowner, a reverse mortgage allows you to live a more comfortable retirement if the homeowner has limited retirement income sources. It also allows you to continue living in your home while also receiving monthly or lump sum payments. Reverse mortgage rates will vary based on the current market rates, loan amount, loan type and credit history.
What are benefits to a reverse mortgage?
Here are the benefits to a reverse mortgage:
- You remain as the homeowner on title.
- You still retain ownership of your home.
- You can also choose to take your funds any way you desire.
- You can take it as a lump sum at once.
- You can also take it as a line of credit that can be used when needed.
- You can choose to have a steady stream to be paid monthly for a specific period, or as long as you are still a resident of the home.
- You’ll still get your social security or your Medicare benefits.
Once your loan has been repaid, you or your heirs are entitled to the remaining equity. In other words, the remaining equity belongs to you. These are the benefits of taking a reverse mortgage.
South Carolina reverse mortgage broker
As discussed above, there are a combination of payment options with a reverse mortgage. However, if you opt for a fixed-rate loan, you’ll be paid a single disbursement lump sum. Contact the Cain Mortgage Team to get more information on a reverse mortgage and learn about the pros and cons of a reverse mortgage.
Like every form of home financing, there are pros and cons to each. For many, a reverse mortgage is a huge lifeline and well suited to their particular situation. For those homeowners, the pros of a reverse mortgage outweigh the cons.
What are the advantages of a reverse mortgage in South Carolina?
Here are the advantages of a reverse mortgage:
- The proceeds are not taxable.
- The borrower is not responsible for the repayment of the loan.
- Backed by the Federal Housing Administration.
- You can pay off any time, no pre-payment penalty.
- Equity doesn’t count as income and shouldn’t affect Social Security or Medicare benefits.
- The term of the loan goes to age 150 of the youngest borrower.
- The loan can be fixed or adjustable-rate.
What are the cons of a reverse mortgage?
Property taxes, homeowners insurance, other housing fees such as HOA dues or Flood insurance must be paid by you as with any home. You have to live in the home 6 months or more a year as your primary residence, and maintain the home.
- A reverse mortgage has strict regulations by the Federal Government.
- Closing costs are higher than on a traditional mortgage.
- There is a lien placed on the home.
- There will be less equity for the heirs.
- Loan balance can grow over time
What qualifies for a reverse mortgage in South Carolina?
This particular type of home financing is only available to senior homeowners and the program has been recently reformed to be more fair and favorable towards seniors. A reverse mortgage, for many, is a solution that helps those who don’t have proper retirement income or assets.
- You must be 62 years or greater to qualify.
- Not all properties qualify for a reverse mortgage.
- You must have enough equity to qualify.
- Vacation homes and investment properties are not eligible.
One couple we recently helped wanted to downsize to a house that had main floor living and no yard maintenance. They had enough equity in their home to qualify for the HECM For Purchase (H4P). They were able to purchase a home with main floor living in the neighborhood close to their grandkids and have NO monthly mortgage payment. For them, the cons of a reverse mortgage were outweighed by the benefits!
Jumbo reverse mortgage in South Carolina
A jumbo reverse mortgage can help you tap into your home equity during retirement and help you face everyday challenges. When you meet the age and credit score requirements, the jumbo reverse loans can be a place to age and increase your cash flow with rising healthcare costs, education, or helping out other family members.
Jumbo reverse mortgage loans are targeted at new homeowners with higher valued homes. These loans come with some essential key features that make them stand out, providing more alternatives and borrowing power for homeowners with high-valued properties.
Private firms and larger banks are generally responsible for jumbo reverse mortgages, however, borrowers are subject to the same obligations under traditional reverse mortgages to finance their high-valued property.
Reverse mortgage lenders near South Carolina
If you want to know if a reverse mortgage is right for your situation, you can get a free confidential analysis. We’ll ask a few questions and can easily determine if your property qualifies for a reverse mortgage. Call the Cain Mortgage Team today!
To get more information click Cain Mortgage Team or contact us today at 803 261 9267!