How Does Reverse Mortgage Interest Work? For a reverse mortgage, you are charged interest on the proceeds you receive. This interest compounds over the life of the loan until the loan is repaid. Typically, both fixed and variable interest rates are available. Rates are tied to a standard index, such as the 1-year Treasury Bill, or the LIBOR rate, plus an additional margin, most likely an additional 1-3 percentage points. Compare interest rates carefully in considering reverse mortgage options.

As you will see in the video, every home and market is a unique situation. Good marketing plans are specific to both. But every plan will include: Preparation Pricing and Marketing Activities. Preparation takes time - typically, months. Homes must be in show condition all repairs and upgrades complete and all photos and video completed before the home goes on the market. Pricing, likewise, should be planned in advance. Your broker will advise on both the best price and the best TERMS things like closing costs and seller credits to balance sales speed with sales price. Once the home is on the market it will quickly be entered in the MLS and will show up in Internet searches by agents and buyers. Your broker will advise other marketing activities including advertising, signage, showing and open house events so make the best of your situation. Their aim is to get negotiable offers, and then take the offer you accept through the closing process.

If you are selling, do not do these things - take some notes from the video! 1. Dont Sell Before The House Is Ready. If it doesnt present well, it will not sell well. 2. Dont Over-Improve People buy houses in neighborhoods. If yours is so improved that it sticks outyoure hurting your chances at selling. 3. Hire Wrong Make your agent choice for business reasons. Personal relationships matter, but experience and expertise will determine financial success in your sale. 4. Dont Hide Anything Covering up or failing to mention real problems doesnt work. State disclosure laws are strictand you can be sued after the sale for anything that should have been made clear. 5. Dont Rush You should know aboutyour mortgage, including pre-payment penaltiesyour market conditions and trendsand your options for your next homebefore jumping on the market. 6. Dont Get Too Emotional Your attachment to your houseand your own financial needs do not really matter in the transaction. If you cant set them asidethe sale will not go as you would like it to. Remember - it was your home, but to the buyer, it is a house.

As this video explains, a signed sales contract doesnt mean your house is sold. There are still financial, contractual and legal steps for both sides. The buyer has to get financing to meet the contract terms - which includes credit checks. The property is inspected and appraised; title insurance and escrow accounts are set up while you locate new housing, pack and move. And take care of any obligations like painting or repairs. After the contract is signed, it can take a month or more of closing steps to reach the closing meeting. So plan on that when you plan to sell.

As this video shows, you cant buy a farm unless it has a farmhouse that is a substantial part of the farms value with a VA loan. VA loans are specifically for the veterans residence. A VA loan for a farmhouse does not require that the farm be active - there is no farming requirement but if income from farming is part of proposed loan qualification the veteran will be required to show that the farm business can turn a profit. Check into Federal and state-level programs - such as the Veteran Farmers Project - related to veterans and farming; they may be of assistance in your decision.

This video could save some veterans thousands. VA loan applicants pay a funding fee - as of 2014, 2.15% of the total loan amount - which can be thousands of dollars.Some veterans and spouses are eligible for exemption. Broadly speaking, veterans who received disability benefits - current or former and who are NOT currently in debt to the government may be exempt from the funding fee.Some spouses may qualify as well. The key thing to understand is, exemption from the funding fee is NOT automatic! Borrowers must certify their veteran status, government debt, benefits and active service stateon VA Form 26-8937. It is important to tell your mortgage company that they need to submit this form EARLY in your home-buying process - if they just look up your records without submitting the form the VA will not begin the review and approval process and your home purchase could be delayed by weeks.

HUD helps people by administering a variety of programs that develop and support affordable housing. As you will see in the video, HUD plays a large role in homeownership by making loans available for lower- and moderate-income families through it is FHA mortgage insurance program and it is HUD Homes program. HUD owns homes in many communities throughout the U.S. and offers them for sale at attractive prices and economical terms. HUD also seeks to protect consumers through education, Fair Housing Laws, and housing rehabilitation initiatives.

Loans from FHA-approved lenders (Federal Housing Authority) provide more flexibility than conventional loans. Here are some of the things generally allowed in re-establishing credit via FHA loans: If you went through foreclosure or deed-in-lieu, if 3 years have passed, you may be eligible If you had outstanding tax liens, if youve arranged a repayment plan with Federal (IRS) or state tax authorities, you may be eligible If you have judgements that have been paid, you may be eligible If you went through bankruptcy at least 2 years ago, you may be eligible. For borrowers with unusual credit records — for example, those who prefer paying in cash and carrying no debt — FHA may be an option. Likewise, new or first-time buyers with little established credit should investigate FHA programs for assistance. Talk to an FHA-approved lender to learn more.