FHA Reverse Mortgage – HECM

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An FHA Reverse Mortgage, also known as a HECM (Home Equity Conversion Mortgage) is loan that allows seniors over the age of 62 to tap into the equity in their home.  This type of FHA Reverse Mortgage enables the homeowner to receive money in the form of fixed monthly payments for life or fixed terms, through a line of credit or in one full lump sum payment.

An FHA Reverse Mortgage (HECM) can also be used to purchase a primary residence when the borrower is 62 years of age or older and is able to use cash in hand to pay the difference between the reverse mortgage and the sales price plus closing costs for the property. This type of reverse has started to gain popularity in the last few years but by large most reverses are done as refinances on their current homes.

FHA Reverse Mortgage (HECM) Requirements
A FHA Reverse Mortgage (HECM) has the following requirements that need to be met in order to be eligible:

With a reverse mortgage, the money is loaned to you and becomes a lien on your house.  You will not be required to make any monthly mortgage payments while enjoying the security of receiving supplementary income to help pay for:

The loan is only payable if you move, sell your home or last surviving borrower passes away.

You have a choice of how you would like to receive the funds disbursed.  Options include:

There are no income or credit qualifications for a reverse mortgage.

FHA does require that you receive counseling before you move forward with a reverse mortgage.  Counseling is done through HUD approved counseling agency.  You can find a list of approved counseling agencies by clicking here.

Want more information now?
Contact one of our FHA Mortgage Consultants to learn how FHA financing can benefit you and get started now with FHA financing! Get an Express Quote to get started or call us at (888)790-0292.

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