Where can I get financial consultation or advice on student loans, consolidation, credit scores and mortgages?

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I am a graduate student nearing graduation and have a heafty student loan around 160k. In addition, my credit score is poor because of a few missed payments. I would like to talk with someone who can give me unbiased advice on how to tackle my student loans as well as provide insight on possibly buying a house, consolidating my debt and raising my credit score.

For A 62 years old ,retired and a home owner with home owners insurance. Can she apply for a reverse mortgage loan or any other debt consolidation loan?

4 Comments
  1. Reply
    you_me_us16
    April 29, 2011 at 9:13 pm

    These question haunt many of us and if you can get it together and get over this in the short of it let us all know!

  2. Reply
    linkus86
    April 29, 2011 at 9:42 pm

    Yes, through the HECM program through FHA.. They require a bit of counseling to gain access to the program, but I am certain it will be helpful.

    Not all mortgage brokers offer HUD loans. Your best bet to find one that can is at one of your large local banks. Good Luck!

  3. Reply
    loanmasterone
    April 29, 2011 at 10:37 pm

    A reverse mortgage is good or bad based on the financial condition or situation of the seniors.

    The primary requirement to obtain a reverse mortgage is that one or both of the seniors must be a minimum of 62 years of age.

    If they are in a good financial condition and have planned well for retirement there is no need for a reverse mortgage.

    A reverse mortgage is sort of expensive to obtain, so one of the first things you would want to do is find out the cost of your parents getting this reverse mortgage. You would also be required to get and pay for an FHA appraisal. All repairs to the house found by the appraiser will have to be repaired prior to the mortgage closing.

    You might also want to know the amount of funds that would actually land in the seniors hand. We do know one thing all mortgages would be paid off, as well as any other liens found on the property, plus the expense of the reverse mortgage, so on a good day the seniors would wind up with approximately the difference of the appraised value minus any mortgages paid off, any liens and the closing cost in their hands.

    They can receive this in one lump sum or monthly payments spread out over a period of time.

    They no longer would be required to pay a monthly mortgage, they could payoff any debts that are owed, with the remainder of the funds being placed in a bank account of their choice.

    The other part to this reverse mortgage is that the seniors will be able to stay in the house as long as they both are alive.

    Once they are no longer with us the heirs of the seniors would have to decide if you wanted the house or not. If the heirs decide the want to keep the house then they would be required to pay off the mortgage company that gave your parents the reverse mortgage plus interest as with any other mortgage lien.

    If the heirs decide they did not want or could not afford the house then the bank would take legal action to secure the property, such as foreclosure.

    A reverse mortgage is an FHA product, therefore you simply have to locate a local FHA approved lender in your telephone book. You might also google reverse mortgage followed by the city in which you reside or where the property is located.

    Before a reverse mortgage might be obtained the seniors would have to go through extensive FHA counseling concerning the reverse mortgage so they would understand exactly know the reverse mortgage work and the effect it would have on them either positively or negatively.

    If qualified she may apply for a regular mortgage loan to consolidate her and pay her debts, as long as she is qualified with the correct credit scores, and is able to financially repay the mortgage loan.

    I hope this has been of some benefit to you, good luck.

    “FIGHT ON”

  4. Reply
    MRA
    April 29, 2011 at 11:05 pm

    I can only answer you in regards to doing a reverse mortgage.

    All she needs to qualify for a reverse is to be 62 years old by the time the loan closes and have substantial equity in her home. As a condition of the loan, it must be her primary residence, she must pay her property taxes and homeowners insurance and maintain her home. It doesn’t matter if she still works or not, what other assets she may have, if she has a lot of credit card debt, or if she had previous bankruptcies, or a low FICO score.

    You never get 100% loan to value, as you can with regular “forward” loans. And as all liens against the property and federal liens must be paid off at closing, if you have an existing mortgage, you would need to have substantial equity to make it worthwhile. For some folks that are just looking to get out from under the burden of a monthly mortgage, it may mean that they will have to bring some money to the table in order to close (which is allowed); but they know that once the loan funds, they will never have another monthly mortgage payment as long as they meet the 4 requirements mentioned earlier.

    How much she gets is based on home value, lending limit (current maximum is $ 625,500), age of the youngest borrower, and the current expected rate. Typically, the older you are the more money you are eligible for. But even a 100 year old will never get 80 or 100% loan to value.

    Some of the other answers have errors (@ loanmasterone). Reverse mortgages by itself are not bad; but if it doesn’t solve your problem, then it obviously is not what you should do – but it doesn’t make it bad. All title holders must be at least 62 years old, and they must all be on the loan. All repairs required DO NOT have to be done before closing; you usually have up to 6 months to do the repairs after the loan closes, using the funds from the reverse mortgage. Also, you DO NOT get the difference between the appraised value and all mortgages that have to be paid off and closing costs. See above for the 4 factors that determine how much she gets. She does not have to withdraw all the money and place it in the bank; this will cause her loan balance to accrue interest much faster than needed while the money just sits in another bank earning almost nothing. If she leaves it in a Line of Credit (LOC), her LOC grows over time and her loan balance will only include the funds that she needed when she needed it plus accrued interest. The heirs can choose to refinance or sell the house themselves and keep the proceeds if there are any. The bank does not take legal action and foreclose unless the heirs choose to walk away from it. I personally would contact 3 brokers, not banks (yes, I work for a broker). The reverse mortgage program is highly regulated by FHA so it works the same from bank to bank, from coast to coast. What differs are the interest rates offered by each bank. If you go directly to the bank, they will only show you what they offer; a broker who specializes in reverse mortgages can show you what several banks offer and you can decide what is more important to you: lowest rate, more money, adjustable or fixed.

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