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Reverse Mortgage: What Is Reverse Mortgage?

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What is reverse mortgage? A Reverse mortgage is a special type of loan for seniors 62 or above, that lets you convert a part of equity in your home into usable cash. Borrowers do not need to repay the loan if the home is their primary residence and they meet the obligations of a reverse mortgage. Most reverse mortgages are provided by the Federal housing administration (FHA), as part of its home equity conversion mortgage (HCEM) program.
What types of home are eligible?
Any single family home or a 2-4 unit home with one unit occupied by the borrower or condominiums which are approved by HUD and manufactured homes that meet the FHA requirements are eligible for Reverse mortgage program.

Can I qualify for FHA’s HECM reverse mortgage?
To be
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Homeowner must live in the home
You are also required to receive consumer information free or at loq cost from a HECM counselor. Call………….. now.

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Will our heir(s) inherit the home?
Yes. Your designated heir may retain the property and satisfy the reverse mortgage debt by paying lesser of
.the mortgage balance or
.95% of the current appraised value of the home.
What are my obligations?

Following are the obligations of a reverse mortgage borrower

• Pay your property-related expenses like property taxes, utilities, HOA fees, hazard insurance on time.
• Property’s condition should be maintained. One must maintain the condition of the home as in the same quality as it was kept at the time you took out the reverse mortgage loan.
• Live in the property as your primary residence.

What are the benefits of a reverse mortgage?
A reverse mortgage provides you a source of income while allowing you to stay in the home.
A reverse mortgage is an effective way to benefit from the money you invested in your home over the years.

Are there any special requirements to get a reverse mortgage?
A borrower must own a home, should be at least of 62years of age. Have enough equity in your home. There are no medical requirements. Borrower has to continue paying property taxes and homeowner’s
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