Reverse mortgage packages was designed for retired old citizens. To qualify for this type of loan the person has to be at least 62 years of age and must have a house and reside in it. Reverse mortgages are useful to help retired senior citizens earn an income or access loans based on the equity or value of their homes. The value of the loan or income is derived from the value of the home. The lender is not reimbursed until the home is sold, usually at the death of the owner. There are four major types of reverse mortgage on display here at the Iran Museum of Loans and Mortgages, reverse mortgage section.
First on display under this section at the Iran Museum of Loans and Mortgages is the Single Purpose Reverse Mortgage. This type of loan is taken to meet a specific purpose only. This type of loan also accrues the least amount of interest. The loan purpose is usually related to the home such as to cover cost of taxes, repairs and renovations. The loan is also usually granted by the government and is taken by those with low or moderate incomes.
Next on display on the reverse mortgage section of the Iran Museum of Loans and Mortgages are Federal Insured Reverse Mortgages. These are the lowest costing reverse mortgage packages available. They can be for single purpose of multi-purpose. They provide the largest cash benefits on all reverse mortgage options which can be verified with a reverse mortgage calculator.
Then there is the Propriety reverse mortgage package. This loan or mortgage package is insured by the companies who grant them. They are more expensive than single purpose or federally insured reverse mortgage loans. There are stated guidelines used to determine who qualifies for this type of loans.
Home Equity Conversion Mortgages is the final mortgage exhibit on display. Very similar to Propriety in that the same qualifying guidelines are used and it is also more expensive, HECM is backed by the Housing and Urban Development, HUD. The main unique feature of the loan is that a counselor must be meet first to discuss the cost and risk and even possible alternatives before the loan can be granted.