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Reverse mortgage company offers a number of benefits especially to the aged. Reverse mortgage is a type of loan that is offered to the senior citizens aged above sixty two years of age. It allows them to get a loan against the value of their house. Thus no other liens against the house are accepted. If there are any other liens then it should be paid off before applying for the reverse mortgage. No repayment of the loan amount is required until the owner passes away. Since the loan is taken against the value of the house, the house is sold after the death of the owner in order to repay the loan. In certain cases the heirs have the power to repay the loan amount without selling off the house. The various benefits that are associated with reverse mortgage are explained below in detail: • The reverse mortgage is tax free. If the owner of the house decides to sell off the property then the depreciation value is covered by the federal government agency of housing. Thus as the home owner you will be required to pay only the amount that you get for selling the house and that amount is considered as the repayment amount. You are not required to pay anything more or less as the repayment amount. • The ownership of the house remains with the owner himself. The owner will posses the rights to transfer the rights of the property to his/ her heir. In case of default also the owner need not worry as the right to stay in their house will not be taken away from them. • In case of conventional loans the income of the borrower is an important criterion which determines whether the person’s loan application will be passed or not. In case of reverse mortgage the income is not considered. The basic purpose of reverse mortgage company is to provide financial assistance to retired people. Thus the criterias which the reverse mortgage company considers are the age of the home owner, the value of the asset and lastly the location of the house. • In case of any defaults made by the reverse mortgage company the owner does not have to face the repercussions. Thus selecting the right reverse mortgage company is essential. You can take the advice of financial experts who can guide you with a good reverse mortgage company. In case any default is made by these companies then you need not worry as the loan is backed by the federal insurance. First Choice Loan Services deals with wide range of VA loan online . Opt for Reverse Mortgage Company along with more competitive loan offers.
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