Find the Best Reverse Mortgages in Sioux City, IA

Types of reverse mortgages in Sioux City

If you’re considering a reverse mortgage in Sioux City — whether it’s to pay health care bills, buy hearing aids, fund a bathroom remodel, invest or cover the costs of long-term care — you should shop around at various lenders.

You will notice there are different types of reverse mortgages. The right type of reverse mortgage for you depends partly on how you want to use the money and the value of your home.

The types of reverse mortgages in Sioux City include the following:

• A Home Equity Conversion Mortgage (HECM) is the most common type of reverse mortgage. It is a federally insured loan only available from Federal Housing Administration-approved lenders. You can receive the funds from a HECM in multiple ways and use them for any purpose. Counseling is required in order to get a HECM in Sioux City.
• A proprietary reverse mortgage is a privately backed reverse mortgage. Some lenders offer “jumbo” reverse mortgages, which are proprietary reverse mortgages for owners of higher-valued homes who wish to borrow more than the HECM FHA mortgage limit of $765,600 at the time of publishing.
• A single-purpose reverse mortgage is the least expensive type of reverse mortgage, but you can only use the funds for a lender-specified purpose. For example, you might only be able to use the money to make home repairs. Single-purpose reverse mortgages are offered by local and state government agencies and nonprofit organizations. They aren’t available everywhere. Low- and moderate-income homeowners are able to qualify.

Sioux City reverse mortgage requirements

To apply for a reverse mortgage in Sioux City, you must:

• Be at least 62
• Own your home completely or have paid off a significant amount
• Live in the property as your primary residence
• Be financially able to pay property taxes and insurance premiums and maintain the home
• Have no delinquent federal debt

The requirements for a reverse mortgage can vary slightly based on the type of reverse mortgage. HECM applicants, for example, must also meet with a Department of Housing and Urban Development-approved counselor for an information session. HECM applicants must also live in properties that meet certain standards.

When you apply for a reverse mortgage, expect a lender to want to see proof of income and assets, timely payment of taxes and insurance premiums, and a list of your monthly expenses. The lender will also check your credit history. The lender may require funds to be set aside to pay property taxes, homeowners insurance and flood insurance.

How do I receive payment for a reverse mortgage in Sioux City?

Reverse mortgage borrowers in Sioux City have different ways to receive loan funds. The availability of different options depends on the type of reverse mortgage you get and the lender.

• Single disbursement: You receive a lump-sum payment. A fixed-rate HECM provides a single disbursement.
• Monthly payments: You receive a fixed monthly payment for a specific number of months (“term” option) or for as long as you live in the home (“tenure” option). You can select this option on an adjustable-rate HECM.
• Line of credit: A line of credit allows you to access money as needed in amounts you want, up to a limit. You can choose this option on an adjustable-rate HECM.
• Combination: This “modified” option combines a line of credit with monthly payments.

Sioux City reverse mortgage FAQ

Who qualifies for a reverse mortgage in Sioux City?

To qualify for a reverse mortgage in Sioux City, you should be at least 62, own your home or have paid off a large amount of your mortgage, live in the home as your principal residence, not have any overdue federal debt and be able to continue to pay property taxes and insurance.

How much money do you get from a reverse mortgage in Sioux City?

How much money you can borrow with a reverse mortgage in Sioux City depends on your age, the type of reverse mortgage (HECM, proprietary or single-purpose), your home’s appraised value, interest rates and your personal financial situation. As a rule, the older you are and the more equity you have in the home, the more you can borrow.

How do you pay back a reverse mortgage in Sioux City?

A reverse mortgage usually doesn’t have to be repaid until the last surviving borrower moves out of the home or dies. The borrower or the borrower’s estate then repays the loan — sometimes by selling the house.