No longer a “secret”, anyone 62 years of age or older, with sufficient equity in their primary residence, can qualify for FHA’s HECM Reverse Mortgage.
Why Isn’t More Known About The FHA HECM?
That situation is changing. When the housing market and economy tanked, people began searching for ways to tap the equity in their homes, or to avoid struggling to make their monthly payments. Suddenly, our older population found themselves without jobs, with severely damaged stock portfolios, or worse. This product has always been out there. However, negative information, and no great need for it existed.
What Accounts For The Tremendous Rise In FHA’s HECM Reverse Mortgages?
The most unique feature of this loan, and what has caused it’s sudden rise in the lending world, is the fact that to qualify for an FHA HECM Reverse Mortgage, there are no income or credit requirements. What is necessary, is that the homeowner be at least 62, and have enough equity in their house to meet the lending criteria. Over and beyond that, they must be able to, or use funds from their reverse mortgage to, keep up their property condition, pay property taxes, and keep their home in good repair. That’s it. No other loan product can compare.
How Much Will It Cost Me To Qualify For FHA’s HECM Reverse Mortgage?
Though the total amount of fees are higher than normal mortgages, and origination fees can vary with lenders, when you have no other way to tap your equity or keep from going into foreclosure, this loan product can be a blessing. FHA has made many improvements on this type of loan and requires counseling for anyone applying for it.
As long as you are educated about qualifying for FHA’s HECM reverse mortgage, the costs involved, and understand the pro’s and con’s of it, you can’t go wrong.
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