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Some FHA borrowers are eligible for a reverse mortgage that allows them to convert a part of their home equity into cash. The FHA reverse mortgage has some unique differences from a traditional home equity loan for qualified borrowers.

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June 23, 2017
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Can FHA Help Get Cash for Home Equity?

FHA Common Question #31

According to FHA loan guidelines, some borrowers are eligible for what is known as a reverse mortgage. This allows the borrower to convert a part of the equity in the home into cash. The FHA reverse mortgage has some unique differences from a traditional home equity loan that can be a huge benefit to anyone who qualifies for the FHA reverse mortgage.

One of the best; no payment is necessary until the borrower does not use their home as the "principal residence" or primary dwelling. If the home is converted from the primary dwelling, for example, into a rental property or if the borrowers move into an assisted living community. This feature of the FHA reverse mortgage is quite helpful for those who qualify.

NEXT:  Are There Reverse Mortgage Requirements?

FHA Loan Articles and Mortgage News

Read About FHA Requirements, Updates, and Guidelines
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Is it Possible to Apply for Another FHA Mortgage?

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How FICO Scores Affect Your FHA Home Loan

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