Reverse Mortgages for Seniors 62 and over

A Reverse Mortgage is a loan which enables homeowners 62 or older to borrow against the equity in their home without having to sell the home, give up title or make any monthly mortgage payments. Loan proceeds can be used for any purpose. They can be taken out as a lump sum, fixed monthly payments, a line of credit, or a combination.

The Reverse Mortgage is insured by the U.S. Dept of Housing and Urban Development (HUD), Federal Housing Administration (FHA) and is repaid when the homeowner no longer occupies the home. The loan, commonly known as HECM, is funded by a lending institution such as a mortgage lender. To assist the homeowner in making an informed decision of whether this program meets their needs, they are required to receive counseling by a HUD-approved third party counselor.

HECM counselors will discuss program eligibility requirements, financial implications and alternatives to obtaining a HECM. Upon the completion of HECM counseling, the homeowner should be able to make an independent and informed decision of whether this product will meet their needs.

Some of the Reverse Mortgage Requirements are:

• Age 62 years of age or older
• Own your property (you may still have a mortgage or home equity loan on it)
• Must occupy your property as primary residence

The Amount of Money Available is Based On:

• Age of the youngest borrower
• Current Interest rate
• Lesser of appraised value or the FHA insurance limit

Financial Requirements:

• No income or credit qualifications are required of the borrower
• There are no asset limitations that borrowers must maintain
• No repayment as long as the property is the primary residence
• Closing Costs may be financed in the mortgage

Property Requirements:

• Single family home or 1-4 unit home with one unit occupied by the borrower
• HUD-approved condominiums
• Manufactured homes
• Meet FHA property standards and flood requirements
• Borrower must maintain their own Real Estate Taxes and Insurance requirements

I would like more information about reverse mortgages.

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