Chino Hills Reverse Mortgage Question - Can I qualify for FHA's HECM reverse mortgage? To be eligible for FHA’s reverse mortgage (HECM), FHA requires that you be a homeowner 62 years of age or older, own your home outright, or have a low mortgage balance that can be paid off at closing with proceeds from the reverse loan, AND you must live in the home. You are also required to receive consumer information from a HECM counselor prior to obtaining the loan. The cost of the counseling (about $125) may be waived in hardship situations. You can find a HECM counselor online or by phoning (800) 569-4287. Credit score and income are not a factor in qualifying for the loan, but do keep in mind that you are responsible for the ongoing maintenance, property taxes, Homeowners Insurance, and property association dues (if any). Failure to keep current on these can cause the home to be foreclosed.
Note - If your income is such that if the last remaining borrower does not have sufficient income to pay the upkeep on the property, you may be better served by selling the home. Please talk with a knowledgeable financial adviser and your HECM counselor about these things.
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