FHA (HECM) Reverse Mortgage

The Reverse Mortgage is backed by the Department of Housing and Urban Development (HUD) and insured by FHA (Federal Housing Administration). To qualify for a Reverse Mortgage the FHA requires that you must be 62 years old or older and own your home free and clear or have a low enough balance on your mortgage that it can be paid off with the proceeds from the Reverse Mortgage. Your home must be the primary residence for all borrowers. Single family dwellings as well as one - four family unit properties, HUD approved condominiums, and a limited number of manufactured homes may qualify if they meet FHA requirements.

 

FHA Reverse Mortgage Highlights (HECM)

  • The loan is backed by HUD and insured by FHA.
  • No mortgage payment required as long as at least one borrower lives in the home and maintains the home as their primary residence.
  • At sale, if the property sells for more than is owed on the Reverse Mortgage, any remaining proceeds go to heirs.
  • Sufficient income to meet the monthly financial assessment requirements.
  • Credit history is evaluated when qualifying for a Reverse Mortgage.
  • Proceeds from the program can be paid in various combinations, lump sum, monthly payments, line of credit which earns interest, or term payments for a specified period of time.
  • The Reverse Mortgage loan amount is based on the age of the youngest borrower, current interest rate, and value of the property.
  • Maximum principal limit (loan amount) is based on the current FHA lending limit of $726,525.00.
  • HECM Reverse Mortgage loans are non-recourse loans. This simply means that should the home be sold when it is no longer being used as your primary residence, any amount due beyond the value of your home will not be the responsibility of you as the borrower, nor that of your estate or heirs. The assurance provided by this loan insures that you are protected. But also, if the home brings more at sale than the amount owed on the Reverse Mortgage loan, that portion is yours, or will go to your estate.

 

To learn more, contact a Reverse Mortgage Banking Representative today!

 

                                       

 

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