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FHA Reverse Mortgage Programs
FHA HECM (Home Equity Conversion Mortgage) Program
There are several types of reverse mortgages in the
marketplace but none more popular than the FHA HECM
product. The FHA reverse mortgage program is backed
by HUD (The U.S. Department of Housing and Urban Development)
and insured by the FHA. To be eligible for a HECM, FHA
states that you must be sixty-two years of age or older,
and either own your home free-and-clear or have a low
enough balance that the loan can be paid off with a
reverse mortgage. Also, the senior must live in the
home as their primary residence. 1-4 unit properties,
HUD approved condominiums, and a limited number of manufactured
homes may qualify if they meet FHA's requirements.
FHA Reverse Mortgage Program Highlights (HECM reverse mortgage):
- Backed by HUD
- Insured by Federal Housing Administration (FHA)
- No repayment required as long as person lives in the home
- Remaining value goes to survivors
- No income or credit qualifications required
- Payments can be made in one lump sum, on a monthly basis for a specific
amount of years, monthly income for life (Tenure Payment) left in a line of
credit and grow in value or a combination of all of them
- Size of loan determined by borrower's age, interest rate, and the value
of the property
- No limits on value of property. However, the entitlement amount will be
capped by the FHA ceiling for designated area
- A reverse mortgage is what we call a non-recourse loan. This means that
with a reverse mortgage you are not personally liable. The liability is only
to the extent of the value of your home at time of sale, death or vacating
the premises as your permanent residence. Your heirs are not personally liable;
they can either sell the home at time of your death or keep the home and pay
off the remaining balance of the Reverse Mortgage.
Contact one of AAXA's HECM Reverse Mortgage Specialists by calling 877-728-3569
or complete the Rate Quote form on this web site and one of our professionals
will call you to discuss if FHA's reverse mortgage programs might be right for
you.
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