There is a popular option for borrowers aged 62 and older; The (HECM) FHA insured reverse mortgage. This is an option for homeowners owners age 62 and older to convert the equity in their home into monthly streams of income and/or a line of credit to be repaid when they no longer occupy the home. The loan, commonly known as HECM, is funded by a lending institution such as a mortgage lender, bank, credit union or savings and loan association. Interested parties can get help and counseling by a HUD-approved HECM counselor and they will help you see if you qualify.
Homeowners who meet the eligibility criteria can complete a reverse mortgage application by contacting a FHA-approved lending institution such as a bank, mortgage company, or savings and loan association. For a list of HECM FHA approved lenders go to: http://www.hud.gov/ll/code/llplcrit.html
Borrower Requirements:
Age 62 years/older, own your property, live in the property as a primary residence and participate in a consumer information session w an approved HECM councelor.
Mortgage Amount Based On:
Age of the youngest borrower, current interest rate, lesser of appraised value or FHA insurance limit.
Financial Requirements:
No income or credit qualifications are required of the borrower, No repayment as long as the property is the primary residence, closing costs may be finance in the mortgage.
Property Requirements:
Single Family home or 1-4 unit with one unit occupied by the borrower, HUD approved condos, Manufactured homes and leased land, Must meet FHA property standards and flood requirements.
For more information on FHA and HECM Reverse Mortgages see helpful links below:
http://www.hud.gov/offices/hsg/sfh/hecm/hecmhome.cfm
For information on all FHA loans go to:
http://www.hud.gov/offices/hsg/sfh/insured.cfm
Call Bennett Appraisals for all of your FHA and Appraisal Needs 360-746-0224
Website: www.bennett4appraisals.com
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