Arkansas Reverse Mortgage

If you’re a senior over the age of 62, you likely qualify for an Arkansas reverse mortgage.  This is a specialized mortgage program designed to provide retirees and the elderly with steady income tapped from the equity in their own homes.  You don’t have to make any mortgage payments or even pay the loan off.  All you need is home equity.

Reverse Mortgage Arkansas Information

Seniors who own homes have many financial options available to them.  These options include multiple loan types, investments, and other accounts.  But there are only a few ways to tap into home equity.  If the bulk of your retirement income is held in your home, you’ll need to find a program that allows oyu to transform this value into spendable cash.  Reverse mortgages in Arkansas are a common way to do this.

With this type of mortgage, your lender or bank provides you money on a regular basis in exchange for ownership rights to a portion of your home equity.  This money can be spent on anything and everything.  Many seniors choose to use these funds to pay for living expenses, medical costs, family vacations, or other things.  You can also use the money to pay off your current mortgage or eliminate other debts you may owe.  Learn more about the advantages of this program by reading through our detailed reverse mortgage information sheet.

You can choose to receive the funds from your lender in any of the following ways.

• Lump sum.
• Monthly payments.
• Line of credit.
• A combination of these methods.

This allows you the flexibility to craft a financial arrangement that works for you.  Again, as mentioned above, your lender will gain ownership of the equity that is paid out to you.  But you don’t need to worry about losing your home.  Your lender will never take ownership of the title or deed of your home at any point during the reverse mortgage.  Even once you have no equity left, you can continue living in your home until the day you pass away.

The responsibility of paying back the mortgage falls to your heirs, who also gain ownership of the home.  The home can then be sold and the proceeds used to pay back the reverse mortgage.  If your heirs wish to keep the home, they can refinance the loan and pay it off over time themselves.  There are federal laws in place to guarantee that your lender can’t collect more than the value of the home, even if your home value has decreased and your loan amount is higher than the current value.

Check out the HUD’s Frequently Asked Questions page or contact a lender in our network to get answers to any questions you may have about reverse mortgages.

Arkansas Reverse Mortgage Lenders

Before you decide to take out a reverse mortgage, make sure you’ve found a lender you can trust who will be able to help you close your loan swiftly and simply.  Most lenders offer different rates than other lenders.  Make sure you shop around and contact at least four or five lenders in Arkansas to get a feel for the rates that are available.

Also, make sure you find out what fees these lenders will charge you to close the loan.  Mortgages aren’t free.  Every mortgage comes with closing costs attached, as well as origination fees and other minor expenses.  These costs can add up when you’re taking out a reverse mortgage.  Ask each lender what you’ll need to pay, and try to work with the lender who charges the lowest fees.

Read our reverse mortgage checklist to learn more about applying for a reverse mortgage.

About Arkansas

Arkansas is located in the southern region of the United States.  It is known as the headquarters for multiple global companies, including Wal-Mart, J.B. Hunt, and Tyson Foods.  Arkansas plays a major role in the national and global economy.

The capital and the largest city in Arkansas is Little Rock.  This city is a cultural and financial hub for the state and has a large population of retirees.

In conjunction with United Way, the state of Arkansas has implemented a new unique phone system to connect senior citizens to community assistance programs.  This emphasis on assisting seniors and other statewide social services make Arkansas a good state in which to retire.

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