Reverse Mortgage/HECM

Reverse Mortgage/HECM (Home Equity Conversion Mortgage) is backed by the U.S. Government and can only be offered by FHA Approved Lenders. Both H.U.D (Department of Housing and Urban Development) and A.A.R.P have extensive information on reverse mortgages. FHAFunding.com as an approved government lender offer several H.U.D. approved reverse mortgages. Below is a short overview. Please call us for more information.

The HECM FHA (Home Equity Conversion Mortgage) insured reverse mortgage can be used by senior homeowners age 62 and older to convert the equity in their home into monthly streams of income and/or a line of credit to be repaid when they no longer occupy the home. The loan, commonly known as HECM, is funded by a lending institution such as a mortgage lender, bank, credit union or savings and loan association. To assist the homeowner in making an informed decision of whether this program meets their needs, they are required to receive consumer education and counseling by a HUD-approved HECM counselor.

Borrower Requirements:

• Age 62 years of age or older
• Own your property
• Occupy your property as primary residence
• Participation in a consumer information session given by an approved HECM counselor

Mortgage Amount Based On:

• Age of the youngest borrower
• Current interest rate
• Lesser of appraised value or the FHA insurance limit

Financial Requirements:

• No income or credit qualifications are required of the borrower
• No repayment as long as the property is the primary residence
• Closing costs may be financed in the mortgage

Property Requirements:

• Single family home or 1-4 unit home with one unit occupied by the borrower
• HUD-approved condominiums
• Manufactured homes and leased land
• Meet FHA property standards and flood requirements