A Home Keeper Reverse Mortgage, offered exclusively by Fannie Mae, is an alternative to the FHAs Home Equity Conversion Mortgage for homeowners over 62.
Details
The Home Keeper Reverse Mortgage is a way a homeowner can access his home’s equity and pay it back until he or she is no longer living in the home. Money is borrowed against the home’s value and the proceeds of the loan are based on the selected payment plan. At the closing of the loan, the type of payment plan is selected but may be changed through the entire lifetime of the loan. The funds can be disbursed in one of three ways- monthly, as a line of credit or a combination of both. Once the homeowner is no longer in the home, interest that has added up plus any money the lender has paid is due and payable. The Home Keeper Reverse Mortgage has an adjustable rate and is typically based on the market’s interest rate.
Eligibility
1. The borrower, as well as any co-borrower, must be 62 of older and either own the home or have a low mortgage balance that can be paid at closing.
2. The home is the primary residence
3. The home is a single-family, one unit that meets the requirements of Fannie Mae.
4. Agreement to attend mortgage counseling
Maximum loan amount
The principal limit, or maximum loan amount that can be borrowed, is determined on the number of borrowers, ages of the borrowers and the adjusted property value. This limit is decided at the time of closing the loan.
Features
~Similar to the HUD HECM but more flexible
~Higher loan limits
~Offers a senior the equity to purchase another home
~Available for condo and single-family homeowners
~Three basic fees: origination fee, closing costs, monthly servicing fees
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