Get Help on FHA Reverse Mortgage for Seniors Today

• Consult a mortgage specialist to learn about this FHA program and understand the risks involved.
• Determine your eligibility to get benefitted with a FHA reverse home mortgage loan.
• If you don’t meet the conditions stipulated by FHA, contract will require you to repay the loan.

• Be at least 62 years in age and own a property that is your primary residence.
• Have repaid large amount of principal loan dues if still not owning property completely.
• Not have been delinquent on any federal debt payments.
• Show financial capacity to repay additional debt including property taxes, insurance premium fees and homeowner association charges.
• Have actively participated in consumer information session provided by a HUD approved housing counsellor.

Property Requirements

As per the updated new FHA reverse home mortgage for senior's eligibility guidelines, only the following categories of homes could be eligible for loan workouts.

• Single as well as 2 to 4 unit family homes wherein borrower is primary occupant.
• Residential or commercial property under consideration is a HUD approved condominium project.
• All types of manufactured homes that meet all requirements stipulated by the FHA.

Financial Requirements

• All verifiable documents pertaining to monthly or annual income, living expenses, debts and credit history.
• All verifiable documents relating to regular payment of yearly property taxes as well as flood and hazard insurance premium payments.

Besides, if you opt for an Adjustable Rate Mortgage (ARM), you have the chance to choose one of the below mentioned loan repayment plan options.

• Tenure – Monthly payment schedule with equal instalments as long as one of the borrowers is a primary occupant in the property.
• Term – Equated monthly mortgage instalments for a fixed period of time.
• Line of Credit – Secure credit facility within a specified limit for making unscheduled payments.
• Modified Tenure – Combination of scheduled monthly instalments and line of credit as long as borrower occupies the property.
• Modified Term – Combination of scheduled monthly mortgage instalments and line of credit for a fixed period of time chosen by borrower.

However, if you choose a Fixed Rate Mortgage (FRM) then you will be offered a single disbursement lump sum payment plan.

• Mortgage Insurance Premium (MIP) – By paying costs for mortgage premium insurance or MIP, you can increase chances of receiving the loan advances faster and these can be very much part of the loan proceeds.
• Third Party Fees or Charges – You may have to bear costs towards third party fees or closing costs in the form of home appraisal charges, title clearance fees, insurance charges, inspections, surveys, documentation charges, fees for credit checks, property or mortgage taxes and other charges.
• Loan Origination Fees - Lenders charge origination fees for processing FHA reverse mortgage loan applications and that is usually, 2% of the home’s current market value plus 1% of the loan amount being sought. Under no circumstances will this fee be less than $2,500.
• Servicing Fees – Loan dealers may charge fees for servicing HECM loan over its entire term to cover up costs incurred on preparing account statements, disbursement of loan proceeds and for ascertaining that all requirements relating to property taxes and hazards insurance premium are being strictly complied with. In addition, some mortgage loan providers might also charge monthly loan servicing fees not exceeding an amount of $30 to $35 for fixed as well as adjustable rate home mortgages.