The FHA or Federal Housing Administration is the agency directly responsible for overseeing the Reverse Mortgage program.
Reverse Mortgage Facts
President Obama and several government agencies are closely monitoring the reverse mortgage program for senior homeowners. A record number of baby boomers are reaching retirement age without adequate funds and are enlisting the help of a reverse mortgage agreement for financial assistance. The Department of Housing and Urban Development and the Federal Deposit Insurance Corporation are paying close attention to the large number of reverse mortgages being issued. These agencies are working with the FHA to ensure that this mortgage program for seniors is keeping pace with the older homeowners’ needs.
How a Reverse Mortgage Works?
A reverse mortgage pays homeowners from the equity that has accrued in their home over years of making mortgage payments. This money enables seniors to have enough income to live comfortably in their own home for as long as possible. The additional income can provide the opportunity to pay off a mortgage or reduce debt and live independently until the decision is made to make different living arrangements and leave the home. In many cases, the money affords seniors to pay for extra care instead of living in assisted care facilities or retirement homes.
Who Qualifies for a Reverse Mortgage?
Senior homeowners who are at least 62 years old may qualify for a reverse mortgage agreement. Single family homes, 1-4 unit structures in which one unit is occupied by the borrowers, condominiums, and mobile homes built after 1976 are qualified by the FHA for this type of mortgage. There is no income verification or credit score requirement needed in order to qualify for a reverse mortgage. The homeowners must agree to live in the home as their primary residence until the agreement has ended.
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