There are a lot of Mortgage Lender Types, who are presently conducting business operations in the financial market. These Mortgage Lender Types could be classified into several types. The usual categories are the reverse mortgage lenders, the sub prime mortgage lenders, the bad credit mortgage lenders, refinance mortgage lenders.
Other than the normal categories in operation there are yet other classifications. These categories are the hard money lenders, the Christian mortgage lenders, the capped mortgage lenders. However the most dominant criteria of distinction, in vogue, these days is the usage of the world wide web as a marketing tool, as there are both on and offline concerns that happen to provide mortgage finance or services.
The reverse mortgage lenders tend to operate in the role of agencies. They are basically non-governmental organizations.
Some of these are operate on a no profit basis. In the US these companies have been providing reverse mortgage facilities to the senior citizens, over there. However there are some basic criteria that need to be satisfied before anyone becomes eligible to apply for these facilities.
The first and foremost condition is that the applicant needs to be at least or more than sixty two years of age. He also needs to have a house of his own.
These reverse mortgage facilities have the backing of the Department of Housing and Urban Development. However though it is the Federal Housing Department, which is entrusted with the responsibility of executing these duties directly.
The single purpose, the federally covered as well as the proprietary reverse mortgages are the three variants of the reverse mortgage loans , provided in the US. The types of lenders tend to differ pertaining to the mortgage types being provided.
With regards to the single purpose reverse mortgages the lenders are either no profit companies or governmental agencies. The Department of Housing and Urban Development provides the types of reverse mortgages that are known as the Home Equity Conversion Mortgage. Private concerns happen to be the biggest providers of the propriety reverse mortgages.
The reverse mortgage lenders either provide all the money at the same time , or they provide the money in monthly installments. The payments, made are usually premised on the worth of the home that happens to be a collateral. The repayments are usually made when the owner either relocates or lets go of his property.
There have been occasions when the borrower has passed away. In such cases two things have happened. Either the heir has repaid or the lender has sold the property to get back his money.
The non federal mortgage loan amounts are provided by the business concerns, which happen to deal with lending. Some of the leading companies in this regard are the National Reverse Mortgage Lenders Association, as well as the American Reverse Mortgage Association.
The best way to obtain a proper reverse mortgage scheme is to get tips from a counselor beforehand. It would also be helpful if the customers can make themselves aware of the different schemes that are on offer.
It is possible to have mortgage loans from the banks where people have their accounts. There are other forms like the credit unions, special mortgage lenders and the mortgage agents. Usually the lenders tend to vary with regards to their treatment of clients.
Some of these mortgage lenders tend to solely cater to the customers who have a good or great credit records. However there are lenders who may look after the ones with poor credit records. The situation, however is not so bright as the rules are not really flexible enough to accommodate these people.
Last Updated on : 24th August 2013