FHA Reverse Mortgage
Convert Your Equity into Income

Established in 1934, The Federal Housing Administration (FHA) offers mortgage insurance on loans through FHA-approved lenders. The FHA provides this coverage for single and multi-family homes, and other approved purchases. The FHA does not issue loans, but FHA mortgage insurance is quite attractive for a prospective lender.
The main reason for this is simple; FHA mortgage insurance protects the lender's investment should a homeowner default on the mortgage. Loans insured by the FHA feature low down payments, and costs for FHA mortgage insurance are built into the mortgage payment.
An FHA reverse mortgage is designed for homeowners age 62 and older. It allows the borrower to convert equity in the home into income or a line of credit. The FHA reverse mortgage loan is also known as a Home Equity Conversion Mortgage (HECM), and is paid back when the homeowner no longer occupies the property.
There are requirements for an FHA-insured reverse mortgage or HECM;
- The loan is based on the age of the youngest borrower if there are co-signers.
- Homeowners are required to get consumer counseling and education before a HECM loan is approved.
- Borrowers must own and live on the property as the primary residence.
Unlike other FHA loans, there are no income or credit qualifications for this type of loan. You will be required to have a current appraisal on the property as the amount of an FHA reverse mortgage is based on the home's value or the FHA insurance limit, whichever is lower. The FHA reverse mortgage;
- Is a loan based on current interest rates.
- Allows closing costs to be financed in the reverse mortgage.
- Is for single-family homes or up to a four-unit home, but must be occupied by the borrower.
- Is also permitted for FHA-approved condominiums and manufactured homes.
FHA reverse mortgages or HECM loans require the home to conform to FHA property standards and flood requirements. The FHA reverse mortgage has a variety ways the borrower can receive the money including monthly payments, a line of credit, or combinations of payments and credit. The borrower does not pay on these loans until the house is sold. The loan is repaid from the proceeds of the property sale including interest. Any remaining equity in the home after the loan has been repaid belongs to the homeowner.
If there is not enough money from the sale of the home to repay the loan in full, FHA insurance is used to pay the difference. If you need further clarification of the details of an FHA reverse mortgage, ask your loan officer to explain before you sign.

FHA Refinance Options for Homeowners

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FHA Loan Articles and Mortgage News
March 5, 2021 - HUD originally announced a COVID-19-related foreclosure moratorium in March of 2020. Since that time the agency extended the deadline to apply for relief multiple times. Extended foreclosure and eviction moratoriums now expire June 30, 2021.
March 2, 2021 - With a 2021 winter disaster to deal with, home owners across many states including Texas, Oklahoma, and elsewhere are looking at home repairs and renovation as part of disaster recovery. Other homeowners may need a home repair or upgrade no matter what kind of winter they are having.
March 1, 2021 - Those with FHA mortgages who own homes in the state of Texas are getting help from the federal government in the wake of deadly winter storms in the area affecting some half a million homeowners in the Lone Star State.
February 26, 2021 - If you have been looking at home loan interest rates and considering your refinance loan options, it’s a good idea to take some steps that will help you get closer to refi loan approval. It's a good idea to shop around and get all the information possible about how much a refinance loan will cost.
February 16, 2021 - Borrowers who went into loan forbearance over COVID-19-related financial issues have several options for mortgage loan relief. Others instead wanted to refinance their mortgages into a lower payment or interest rate in order to reduce the financial pressure on their monthly budgets.