Nu Horizons has different programs of reverse mortgages for the benefit of farmers, retired senior citizens and people who are 62 years old or more with a steady income. Before making a final choice, it is advisable to hold discussions with reverse mortgages counselor regarding possible alternatives, risks and costs of various loans. To qualify for the different programs, the borrower must continuously reside in his or her own home.
Nu Horizons, as a lending company derives equity from borrower’s home. There is no need to reimburse the amount to the lender unless the home is sold. Single Purpose Reverse Mortgage program facilitates the persons with low or moderate income provided by the Government. This program helps homeowners to pay for their taxes, repairs and/or improvements on their home and property.
Under federally insured reverse mortgages or Home Equity Conversion Mortgages (or HECM, in short), the loan is backed by Housing and Urban Development (HUD). This program is costlier and do not need single purpose use. Under proprietary reverse mortgages, the loans are insured by companies and there is no need to meet a counselor before presenting an application for the program.
In the above reverse mortgages, after assessment of various factors such as home value, age, interest rates and location, the amount to be borrowed by a farmer is determined. An HECM counselor or a knowledgeable reverse mortgages officer helps the borrowers to make their right choice of reverse mortgages program.
The terms and conditions of reverse mortgages programs for farmers differ from one state to another. Standard fixed rate mortgage is the most popular mortgage program which is available in various flavors, including 15 year fixed mortgage and 30 year fixed mortgage. This plan suits farmers who have fixed budget and need a definite end to their loan. Before taking a final decision to consider any type of loan, it is better to investigate all the options available before the farmers.