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It is sometimes difficult to keep your farm running profitably. It can cost you a lot to keep the farm looking its best while trying to turn a profit at the same time. If the farm has been in your family for generations, you may not want to sell it even if you stand to make a profit. Many farmers today are looking for reverse farm mortgage lenders to help them deal with this type of situation.
There are some specific requirements needed to qualify for a farm reverse mortgage. They are basically the same as with any reverse mortgage, it is essential that the borrower be 62 years of age or older and must own the property. Once a reverse mortgage is obtained, the owner (borrower) is given money in the form of a lump sum or monthly payments and is not required to give up the property as long as they are still using or living in it.
A reverse mortgage is a low-interest loan that is only available to seniors who own their own home (farm). The capital built up in the house (farm) is used as collateral and the loan amount is a percentage of the value of the house (farm). This loan does not have to be repaid until the home or farm is permanently vacated by the owner or until the death of the owner. The property then has approximately 12 months to pay off any remaining balance on the reverse mortgage or has the option to sell the home (farm) to pay off the balance.
A farmer has many options to choose from when taking out a reverse mortgage. He can get monthly or one-time payments or a combination of both when the money is spread out from the reverse mortgage. Then, as with a regular reverse mortgage, the money received can be spent in any way the borrower chooses. One option might be to buy better farm equipment to increase the overall productivity on the farm.
With a reverse mortgage, the farmer has the money he needs and doesn’t have to worry about losing his precious farmland. He will be able to continue working on the farm and have extra income to use to increase farm productivity.
To be eligible for a reverse HUD mortgage, the FHA requires that all homeowners have reached the age of 62. They must own their home (farm) or have paid off approximately half of the mortgage. HUD requires no income or credit that is required to obtain a reverse mortgage.
It is sometimes difficult to keep your farm running profitably. It can cost you a lot to keep the farm looking its best while trying to turn a profit at the same time. If the farm has been in your family for generations, you may not want to sell it even if you stand to make a profit. Many farmers today are looking for reverse farm mortgage lenders to help them deal with this type of situation.
There are some specific requirements needed to qualify for a farm reverse mortgage. They are basically the same as with any reverse mortgage, it is essential that the borrower be 62 years of age or older and must own the property. Once a reverse mortgage is obtained, the owner (borrower) is given money in the form of a lump sum or monthly payments and is not required to give up the property as long as they are still using or living in it.
A reverse mortgage is a low-interest loan that is only available to seniors who own their own home (farm). The capital built up in the house (farm) is used as collateral and the loan amount is a percentage of the value of the house (farm). This loan does not have to be repaid until the home or farm is permanently vacated by the owner or until the death of the owner. The property then has approximately 12 months to pay off any remaining balance on the reverse mortgage or has the option to sell the home (farm) to pay off the balance.
A farmer has many options to choose from when taking out a reverse mortgage. He can get monthly or one-time payments or a combination of both when the money is spread out from the reverse mortgage. Then, as with a regular reverse mortgage, the money received can be spent in any way the borrower chooses. One option might be to buy better farm equipment to increase the overall productivity on the farm.
With a reverse mortgage, the farmer has the money he needs and doesn’t have to worry about losing his precious farmland. He will be able to continue working on the farm and have extra income to use to increase farm productivity.
To be eligible for a reverse HUD mortgage, the FHA requires that all homeowners have reached the age of 62. They must own their home (farm) or have paid off approximately half of the mortgage. HUD requires no income or credit that is required to obtain a reverse mortgage.
