Reverse Mortgages: Fannie Mae Home Keeper Loans

If you want to mortgage your house, then you could try doing it through the reverse mortgage method. The reverse mortgage is one which is offered to people above the age of retirement, and is used to allow them to release cash out of the property. The homeowner is not obliged to repay the loan, and it is deferred until the owner dies, or the home is sold. This gives them extra cash to use to enjoy their retirement.

The Fannie Mae Home Keeper Loan

One of the most popular types of mortgage offered to the general public was the Fannie Mae Home Keeper loan. It is no longer available, but was sponsored by the government, hence the name, and worked rather like the federally insured loan known as the HECM. The Fannie Mae loan was offered to people who had higher value homes, and could lend the homeowner nearly $500,000.

Financing Retirement

The Fannie Mae loan was dependent upon the age of the homeowner, the current value of the home, and the interest rates due on the house. There were maximum limits, which were determined by location. This means that even if the home was worth more than the local area, more money would not be available.

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