Sometimes it is difficult to operate your farm profitably. It may cost you too much to keep the farm in top condition while trying to make a profit. If the farm has been in your family for generations, you may not want to sell it even though you are likely to make a profit. Many farmers today are looking to find lenders for reverse farm mortgages to help them deal with this type of situation.
Some specific requirements are needed to qualify for a reverse farm mortgage. They are basically the same as any reverse mortgage, ie the borrower is 62 or older and must be a homeowner. Once the reverse mortgage is obtained, the owner (borrower) receives funds in a lump sum or in the form of monthly installments and he is not required to give up the property as long as he is still using it or living in it.
A reverse farm mortgage is a low interest loan available only to seniors who own their own homes (farms). The equity accumulated 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 house or farm is permanently vacated by the owner or until the owner dies. The estate then has approximately 12 months to pay off any remaining balance 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 obtaining a reverse mortgage. He can receive monthly payments, a lump sum payment or a combination of both when the funds are distributed from the reverse mortgage. Then, as with a regular reverse mortgage, the money received can be spent as the borrower wishes. One option could be to purchase better farm equipment to increase the overall productivity of the farm.
With a reverse mortgage, a farmer has the funds he needs and doesn’t have to worry about losing his valuable farmland. He will be able to continue working on the farm and will have extra income to use to increase the productivity of the farm.
To be eligible for a HUD reverse mortgage, the Federal Housing Administration requires all homeowners to have reached age 62. They must own their own home (farm) or have at least paid off about half of the mortgage. HUD does not require any income or credit for a reverse mortgage.
Sometimes it is difficult to operate your farm profitably. It may cost you too much to keep the farm in top condition while trying to make a profit. If the farm has been in your family for generations, you may not want to sell it even though you are likely to make a profit. Many farmers today are looking to find lenders for reverse farm mortgages to help them deal with this type of situation.
Some specific requirements are needed to qualify for a reverse farm mortgage. They are basically the same as any reverse mortgage, ie the borrower is 62 or older and must be a homeowner. Once the reverse mortgage is obtained, the owner (borrower) receives funds in a lump sum or in the form of monthly installments and he is not required to give up the property as long as he is still using it or living in it.
A reverse farm mortgage is a low interest loan available only to seniors who own their own homes (farms). The equity accumulated 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 house or farm is permanently vacated by the owner or until the owner dies. The estate then has approximately 12 months to pay off any remaining balance 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 obtaining a reverse mortgage. He can receive monthly payments, a lump sum payment or a combination of both when the funds are distributed from the reverse mortgage. Then, as with a regular reverse mortgage, the money received can be spent as the borrower wishes. One option could be to purchase better farm equipment to increase the overall productivity of the farm.
With a reverse mortgage, a farmer has the funds he needs and doesn’t have to worry about losing his valuable farmland. He will be able to continue working on the farm and will have extra income to use to increase the productivity of the farm.
To be eligible for a HUD reverse mortgage, the Federal Housing Administration requires all homeowners to have reached age 62. They must own their own home (farm) or have at least paid off about half of the mortgage. HUD does not require any income or credit for a reverse mortgage.
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