Keep That Farm in the Family With a Reverse Farm Mortgage

Jan 13
08:54

2009

Matt D Murren

Matt D Murren

  • Share this article on Facebook
  • Share this article on Twitter
  • Share this article on Linkedin

It is sometimes hard to keep your farm running profitably. It may be costing you too much to keep the farm in top shape while at the same time try 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 stand to make a profit.

mediaimage
It is sometimes hard to keep your farm running profitably.  It may be costing you too much to keep the farm in top shape while at the same time try to make a profit. If the farm has been in your family for generations,Keep That Farm in the Family With a Reverse Farm Mortgage Articles you may not be willing to sell it even if you stand to make a profit.  Many farmers today are looking to find lenders for reverse farm mortgages to help them deal with this type of situation.

There are some specific requirements necessary in order to qualify for a reverse farm mortgage. They are basically the same as with any reverse mortgage, primary that the borrower is 62 years old or older and must be a property owner.  Once the reverse mortgage is obtained, the owner (borrower) is given funds in a lump sum or as monthly payments and he is not required to give up the property as long as he is still using or living in it. 

A reverse farm mortgage is a low-interest loan available only to senior citizens who own their own homes (farms).  The equity that has been built up in the home (farm) is used as collateral and the amount of the loan is a percentage of the home’s (farm’s) value.  This loan does not have to be repaid until the home or farm is vacated permanently by the owner or until the owner passes away.  The estate then has approximately 12 months to repay any balance remaining on the reverse mortgage or has the option of selling the home (farm) to pay off the balance. 

A farmer has several options to choose from when obtaining a reverse farm mortgage.  He can receive monthly payments, a lump sum payment or a combination of both when funds are distributed from the reverse mortgage.  Then, as with a regular reverse mortgage, the money received can be spent in any way the borrower chooses.   One option might be to purchase better farm equipment so that overall productivity on the farm will be increased. 
With a reverse mortgage a farmer has the funds he needs and doesn’t have to worry about losing his precious farmland.  He will be able to continue working on the farm and have additional income to use for increased farm productivity.

To be eligible for a HUD reverse mortgage, the Federal Housing Administration requires that all homeowners must have reached the age of 62.  They must own their own home (farm) or have at least paid off approximately half of the mortgage.  HUD requires no income or credit requires for a reverse mortgage. 


Also From This Author

Mastering the Art of Memorable Wedding Toasts

Mastering the Art of Memorable Wedding Toasts

Crafting a wedding toast that resonates with the couple and guests alike is a blend of heartfelt sentiment, humor, and brevity. It's a moment that can add a sparkle to the couple's special day, and with the right preparation, you can deliver a speech that's both touching and entertaining. Here's how to create a wedding toast that will be remembered for all the right reasons.
The Art of Humor: When to Incorporate Jokes into a Wedding Speech

The Art of Humor: When to Incorporate Jokes into a Wedding Speech

A wedding is a beautiful tapestry of emotions, often weaving together the heartfelt and the humorous. While the occasion is predominantly a celebration of love and commitment, there's a time and place for laughter to echo through the venue. The key lies in discerning whether the atmosphere of the particular wedding you're attending is ripe for a sprinkling of humor during the speeches.
Mastering the Art of Wedding Speeches: A Guide to Captivating the Crowd

Mastering the Art of Wedding Speeches: A Guide to Captivating the Crowd

Crafting the perfect wedding speech is an art form that can turn an ordinary reception into an unforgettable experience. While guests may initially be more focused on the festivities and the quirky dance moves of fellow attendees, the moment for speeches is a pivotal one. It's a time when the atmosphere shifts from light-hearted fun to heartfelt sentiment. The right words can evoke tears, laughter, and a deeper connection to the couple's love story. However, achieving this level of impact is no small feat. Many speeches are marred by awkward pauses, inappropriate jokes, and a lack of preparation. To avoid these pitfalls, utilizing sample wedding speeches as a foundation can be invaluable. With careful research and a touch of personal flair, anyone can deliver a speech that resonates with every guest.