{"id":1668,"date":"2018-05-20T05:55:58","date_gmt":"2018-05-20T05:55:58","guid":{"rendered":"https:\/\/dreamhomefinancing.com\/\/?page_id=1668"},"modified":"2021-11-25T09:21:27","modified_gmt":"2021-11-25T14:21:27","slug":"FHAReverseMortgages","status":"publish","type":"page","link":"https:\/\/dreamhomefinancing.com\/FHAReverseMortgages.aspx","title":{"rendered":"FHA Reverse Mortgages &#8211; HECM"},"content":{"rendered":"<section class=\"wpb-content-wrapper\"><p>[vc_row][vc_column][vc_column_text]If you are 62 yrs old or older and would like to access the equity in your home, then keep reading because an FHA\u00a0Reverse Mortgage (or HECM)\u00a0may be for you. You may also use an FHA\u00a0Reverse Mortgage &#8211; HECM to finance the purchase a new primary residence.<\/p>\n<p>Interested in an FHA\u00a0Reverse HECM Mortgage?\u00a0<a href=\"https:\/\/dreamhomefinancing.com\/\/LeadForm\/\"><strong>CLICK\u00a0HERE TO\u00a0GET\u00a0MORE\u00a0INFO<\/strong><\/a>[\/vc_column_text][vc_column_text]<strong>How an FHA\u00a0Reverse Mortgage Works<\/strong><\/p>\n<p>First, you will need to meet with an HECM counselor to discuss whether you are eligible for the program, how it will impact you financially and what the alternatives are. They will make sure that you are properly educated on the process and implications of obtaining an FHA\u00a0Reverse HECM\u00a0Mortgage. The HECM\u00a0counseling fees vary but must be reasonable and customary. You can anticipate paying about $125 for this counseling session. You can search for an\u00a0<a href=\"https:\/\/entp.hud.gov\/idapp\/html\/hecm_agency_look.cfm\" target=\"_blank\" rel=\"noopener\">HECM\u00a0Counselor<\/a>.<\/p>\n<p><strong>FHA Reverse Mortgage &#8211; HECM\u00a0Requirements<\/strong><\/p>\n<p>The basic requirements are as follows:<\/p>\n<ul>\n<li>You must be 62 years old or older.<\/li>\n<li>The home must be your primary residence at the time when you apply for and close on the loan.<\/li>\n<li>You must either own the home completely or have a very small mortgage balance remaining.<\/li>\n<li>You cannot be past due on any federal debt.<\/li>\n<li>You must have the financial capability of making the FHA\u00a0Reverse Mortgage payments on time including any taxes, insurance, and homeowners association fees (if applicable).<\/li>\n<li>As mentioned above, you must also go through the counseling process with an approved HECM\u00a0Counselor.<\/li>\n<\/ul>\n<p><strong>FHA\u00a0Reverse Mortgage &#8211; Property Requirements<\/strong><\/p>\n<ul>\n<li>The property being financed must meet ALL of the FHA Reverse Mortgage property requirements referenced below.<\/li>\n<li>It must be a single family home or a 2-4 unit home where at least one of the units is occupied by you.<\/li>\n<li>If the property is a condo, it must be a HUD\u00a0approved condo.<\/li>\n<li>If the property is a manufactured home, it must also meet FHA\u00a0Requirements.<\/li>\n<\/ul>\n<p><strong>FHA\u00a0Reverse Mortgage &#8211; Financial Requirements<\/strong><\/p>\n<ul>\n<li>Income and assets must be verified<\/li>\n<li>Living expenses must be documented and will be taken into consideration<\/li>\n<li>Your credit history will be verified and considered<\/li>\n<li>You must be making on time payments of your real estate taxes at the time of application<\/li>\n<li>You must verify that you have hazard insurance and flood insurance if applicable<\/li>\n<\/ul>\n<p>[\/vc_column_text][\/vc_column][\/vc_row][vc_row][vc_column][vc_empty_space height=&#8221;20px&#8221;][vc_column_text]<strong>Types of FHA\u00a0Reverse Mortgages<\/strong><\/p>\n<p><strong>Adjustable Interest Rate FHA Reverse Mortgage<\/strong>\u00a0&#8211; There are many different options available here.<\/p>\n<ul>\n<li>You can receive equal monthly payments as long as you occupy the property as your primary residence.<\/li>\n<li>Equal monthly payments for a pre-determined number of months.<\/li>\n<li>A\u00a0line of credit where you draw the money from your account at any amount or frequency that you choose.<\/li>\n<li>A\u00a0modified tenure where you have a combination of a fixed payment and a line of credit.<\/li>\n<\/ul>\n<p><strong>Fixed Rate FHA\u00a0Reverse Mortgage\u00a0<\/strong>&#8211; Here you get one lump sum payment at closing. The age of the youngest borrower is used to qualify and the maximum mortgage limit is the lesser of the appraised value or $679,650.<\/p>\n<p><strong>Costs for an FHA\u00a0Reverse Mortgage &#8211; HECM<\/strong><\/p>\n<p>You may roll the costs into the loan so you do not have to pay anything out of pocket. However, this does reduce the amount you can borrow by the total of those costs.<\/p>\n<p><strong>The basic fees are as follows:<\/strong><\/p>\n<ul>\n<li>Initial and annual\u00a0<strong>mortgage insurance premiums<\/strong><\/li>\n<li><strong>Various third party charges<\/strong>\u00a0such as an appraisal, title search, insurance, inspections, recording fees, credit checks, etc. These are just a few examples of what you may have to pay for.<\/li>\n<li><strong>HECM Origination fees<\/strong>\u00a0whereby a lender can charge the greater of $2,500 or 2% of the first $200,000 of your homes value, plus an additional 1% of any amount over $200,000 with a cap of $6,000. So, if your home is worth $350,000, then the origination fees could be $3,500.<\/li>\n<li><strong>FHA\u00a0Reverse Mortgage Servicing Fee<\/strong>\u00a0&#8211; Lenders may charge up to $30 per month to help make sure that all of your payments including taxes and insurance are being made on time. If your HECM\u00a0loan adjusts monthly, then the lender may charge up to $35 for the service fee. The service fee can be added to your loan balance and does not have to be paid out of pocket.<\/li>\n<\/ul>\n<p>Hopefully this was useful information for you to consider an FHA Reverse Mortgage or HECM\u00a0loan.<\/p>\n<p><a href=\"https:\/\/dreamhomefinancing.com\/\/LeadForm\/\"><strong>Click here to let us connect you with an approved FHA Reverse Mortgage lender.<\/strong><\/a>[\/vc_column_text][\/vc_column][\/vc_row][vc_row][vc_column][vc_empty_space height=&#8221;20px&#8221;][vc_column_text]<u><strong>Frequently Asked Questions<\/strong><\/u><\/p>\n<p><strong>Do both borrowers need to be 62 years old?<\/strong>\u00a0No, only one of the borrowers does unless you are taking out the entire loan balance as a lump sum, then both need to be 62 yrs old.<\/p>\n<p><strong>Why is HECM\u00a0counseling required?<\/strong>\u00a0They want to make sure that you are fully educated on how the program works and whether this is right for you.<\/p>\n<p><strong>What is a reverse mortgage and why is it different?\u00a0<\/strong>In the case of an FHA\u00a0Reverse mortgage, the bank makes payments to you rather than you making payments to the bank.<\/p>\n<p><strong>Can the home be passed to my heirs if a reverse mortgage is attached?\u00a0<\/strong>Yes, but they must repay the loan balance or refinance the home into their name.<\/p>\n<p><strong>How much money can I\u00a0draw from my home value?\u00a0<\/strong>\u00a0The lesser of the appraised value or the HECM\u00a0FHA\u00a0mortgage limit\/maximum of $679,650<\/p>\n<p><strong>Is it safe? I\u00a0hear horror stories about people losing their homes<\/strong>.\u00a0 It is absolutely safe and you can never be kicked out of your home. You are protected and so is the bank which is why you have mortgage insurance premiums.<\/p>\n<p><strong>We are able to help you to find a reverse mortgage with the best reverse mortgage lenders in the following states:<\/strong> Alabama, Alaska, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, Florida, Georgia, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, South Dakota, Tennessee, Texas, Utah, Vermont, Virginia, Washington, West Virginia, Wisconsin, Wyoming.<\/p>\n<p><strong>Resources<\/strong><\/p>\n<p><a href=\"https:\/\/www.consumerfinance.gov\/ask-cfpb\/are-there-different-types-of-reverse-mortgages-en-226\/\" target=\"_blank\" rel=\"noopener\">Types of Reverse Mortgages<\/a>\u00a0&#8211; CFPB<\/p>\n<p><a href=\"https:\/\/www.fhanewsblog.com\/category\/fha-refinance\/reverse-mortgage-or-hecm\/\" target=\"_blank\" rel=\"noopener\">Who Can Apply For an FHA\u00a0Reverse Mortgage?\u00a0<\/a>&#8211; FHA\u00a0News<\/p>\n<p><a href=\"https:\/\/www.com.ohio.gov\/documents\/fiin_DFIReverseMortgageFinal.pdf\" target=\"_blank\" rel=\"noopener\">Learn About Reverse Mortgages<\/a>\u00a0&#8211; Ohio Department of Commerce[\/vc_column_text][\/vc_column][\/vc_row]<\/p>\n<\/section>","protected":false},"excerpt":{"rendered":"<p>[vc_row][vc_column][vc_column_text]If you are 62 yrs old or older and would like to access the equity in your home, then keep reading because an FHA\u00a0Reverse Mortgage (or HECM)\u00a0may be for you. You may also use an FHA\u00a0Reverse Mortgage &#8211; HECM to finance the purchase a new primary residence. Interested in an FHA\u00a0Reverse HECM Mortgage?\u00a0CLICK\u00a0HERE TO\u00a0GET\u00a0MORE\u00a0INFO[\/vc_column_text][vc_column_text]How an&#8230;<\/p>\n","protected":false},"author":1,"featured_media":0,"parent":0,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":{"_acf_changed":false,"_kadence_starter_templates_imported_post":false,"_kad_post_transparent":"","_kad_post_title":"","_kad_post_layout":"","_kad_post_sidebar_id":"","_kad_post_content_style":"","_kad_post_vertical_padding":"","_kad_post_feature":"","_kad_post_feature_position":"","_kad_post_header":false,"_kad_post_footer":false,"footnotes":""},"categories":[],"tags":[],"acf":[],"_links":{"self":[{"href":"https:\/\/dreamhomefinancing.com\/wp-json\/wp\/v2\/pages\/1668"}],"collection":[{"href":"https:\/\/dreamhomefinancing.com\/wp-json\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/dreamhomefinancing.com\/wp-json\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/dreamhomefinancing.com\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/dreamhomefinancing.com\/wp-json\/wp\/v2\/comments?post=1668"}],"version-history":[{"count":8,"href":"https:\/\/dreamhomefinancing.com\/wp-json\/wp\/v2\/pages\/1668\/revisions"}],"predecessor-version":[{"id":5219,"href":"https:\/\/dreamhomefinancing.com\/wp-json\/wp\/v2\/pages\/1668\/revisions\/5219"}],"wp:attachment":[{"href":"https:\/\/dreamhomefinancing.com\/wp-json\/wp\/v2\/media?parent=1668"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dreamhomefinancing.com\/wp-json\/wp\/v2\/categories?post=1668"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dreamhomefinancing.com\/wp-json\/wp\/v2\/tags?post=1668"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}