Sometimes it is difficult to keep your farm running profitably. It may cost you too much to keep your farm in top condition while trying to make a profit. If the farm has been in your family for generations, you may not be willing to sell it, even if you have a chance to make a profit. Today, many farmers are looking to find reverse farm mortgage lenders to help them deal with this type of situation.
There are some specific requirements necessary to qualify for a reverse agricultural mortgage. They are basically the same as with any reverse mortgage, mainly that the borrower is 62 or older and must own a property. Once the reverse mortgage is obtained, the owner (borrower) receives funds in a lump sum or as monthly payments and is not obligated to give up the property while still using or living in it.
A reverse farm mortgage is a low-interest loan available only to seniors who own their own homes (farms). The equity accumulated in the house (farm) is used as collateral and the loan amount is a percentage of the value of the house (farm). This loan does not have to be repaid until the owner permanently vacates the house or farm or until the owner passes away. The estate then has approximately 12 months to pay off any remaining balance of the reverse mortgage or you have the option to sell the house (farm) to pay the balance.
A farmer has several options to choose from when obtaining a reverse farm mortgage. You can receive monthly payments, a one-time payment, or a combination of both when the reverse mortgage funds are distributed. Then, as with a normal reverse mortgage, the money received can be spent in any way the borrower chooses. One option might be to buy better farm equipment to increase overall productivity on the farm.
With a reverse mortgage, a farmer has the funds he needs and doesn’t have to worry about losing his precious farmland. You will be able to continue working on the farm and have additional income to use to increase farm productivity.
To be eligible for a HUD reverse mortgage, the Federal Housing Administration requires all homeowners to be 62 years old. They must own their own home (farm) or have paid at least about half of the mortgage. HUD does not require income or credit for a reverse mortgage.
Sometimes it is difficult to keep your farm running profitably. It may cost you too much to keep your farm in top condition while trying to make a profit. If the farm has been in your family for generations, you may not be willing to sell it, even if you have a chance to make a profit. Today, many farmers are looking to find reverse farm mortgage lenders to help them deal with this type of situation.
There are some specific requirements necessary to qualify for a reverse agricultural mortgage. They are basically the same as with any reverse mortgage, mainly that the borrower is 62 or older and must own a property. Once the reverse mortgage is obtained, the owner (borrower) receives funds in a lump sum or as monthly payments and is not obligated to give up the property while still using or living in it.
A reverse farm mortgage is a low-interest loan available only to seniors who own their own homes (farms). The equity accumulated in the house (farm) is used as collateral and the loan amount is a percentage of the value of the house (farm). This loan does not have to be repaid until the owner permanently vacates the home or farm or until the owner passes away. The estate then has approximately 12 months to pay off any remaining balance of the reverse mortgage or you have the option to sell the house (farm) to pay the balance.
A farmer has several options to choose from when obtaining a reverse farm mortgage. You can receive monthly payments, a one-time payment, or a combination of both when the reverse mortgage funds are distributed. Then, as with a normal reverse mortgage, the money received can be spent in any way the borrower chooses. One option might be to buy better farm equipment to increase overall productivity on the farm.
With a reverse mortgage, a farmer has the funds he needs and doesn’t have to worry about losing his precious farmland. You will be able to continue working on the farm and have additional income to use to increase farm productivity.
To be eligible for a HUD reverse mortgage, the Federal Housing Administration requires all homeowners to be 62 years old. They must own their own home (farm) or have paid at least about half of the mortgage. HUD does not require income or credit for a reverse mortgage.