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Sometimes it’s hard to keep your farm running profitably. You may have to spend a lot to keep the farm in top shape, as well as try to make a profit. If the farm has been in your family for generations, you may not be ready to sell it even if it stands to make a profit. Many farmers today are looking to lenders for reverse farm mortgages to help them deal with this type of situation.
There are some specific requirements necessary to qualify for a reverse farm mortgage. They are basically the same as any reverse mortgage, the primary being that the borrower is 62 years of age or older and must own the property. Once a reverse mortgage is obtained, the owner (borrower) is given the money as a lump sum or monthly payment and is not required to leave the property as long as he is still using it or living in it Is.
A reverse farm mortgage is a low-interest loan available only to senior citizens who have their own home (farm). The equity that is built up in the home (farm) is used as collateral and the loan amount is a percentage of the value of the home (farm). This loan does not have to be repaid until the house or farm is permanently vacated by the owner or until the owner passes away. The property has approximately 12 months to repay any balance remaining on the reverse mortgage or has the option of selling the house (farm) to pay off the balance.
A farmer has several options to choose from when availing a reverse farm mortgage. He can receive monthly payments, lump sum payments or a combination of both when the money is disbursed from the reverse mortgage. Then, just like a regular reverse mortgage, the money obtained can be spent any way the borrower chooses. One option could be to buy better farm equipment so as to increase overall productivity on the farm.
With a reverse mortgage a farmer has access to the money he needs and doesn’t have to worry about losing his valuable agricultural land. He will be able to continue working on the farm and use the extra income to increase farm productivity.
To be eligible for a HUD reverse mortgage, the Federal Housing Administration requires that all homeowners have reached the age of 62. They should have their own house (farm) or at least pay about half of the mortgage. HUD does not have any income or credit requirements for a reverse mortgage.
Sometimes it’s hard to keep your farm running profitably. You may have to spend a lot to keep the farm in top shape, as well as try to make a profit. If the farm has been in your family for generations, you may not be ready to sell it even if it stands to make a profit. Many farmers today are looking to lenders for reverse farm mortgages to help them deal with this type of situation.
There are some specific requirements necessary to qualify for a reverse farm mortgage. They are basically the same as any reverse mortgage, the primary being that the borrower is 62 years of age or older and must own the property. Once a reverse mortgage is obtained, the owner (borrower) is given the money as a lump sum or monthly payment and is not required to leave the property as long as he is still using it or living in it Is.
A reverse farm mortgage is a low-interest loan available only to senior citizens who have their own home (farm). The equity that is built up in the home (farm) is used as collateral and the loan amount is a percentage of the value of the home (farm). This loan does not have to be repaid until the house or farm is permanently vacated by the owner or until the owner passes away. The property has approximately 12 months to repay any balance remaining on the reverse mortgage or has the option of selling the house (farm) to pay off the balance.
A farmer has several options to choose from when availing a reverse farm mortgage. He can receive monthly payments, lump sum payments or a combination of both when the money is disbursed from the reverse mortgage. Then, just like a regular reverse mortgage, the money obtained can be spent any way the borrower chooses. One option could be to buy better farm equipment so as to increase overall productivity on the farm.
With a reverse mortgage a farmer has access to the money he needs and doesn’t have to worry about losing his valuable agricultural land. He will be able to continue working on the farm and use the extra income to increase farm productivity.
To be eligible for a HUD reverse mortgage, the Federal Housing Administration requires that all homeowners have reached the age of 62. They should have their own house (farm) or at least pay about half of the mortgage. HUD does not have any income or credit requirements for a reverse mortgage.
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