Learn more about the requirements for a reverse mortgage:
Be 62 years of age or older
Own the property outright or paid-down a considerable amount
Occupy the property as your principal residence
Not be delinquent on any federal debt
Have financial resources to continue to make timely payment of ongoing property charges such as property taxes, insurance and Homeowner Association fees, etc.
Participate in a consumer information session given by a HUD- approved HECM counselor
The following eligible property types must meet all FHA property standards and flood requirements:
Single family home or 2-4 unit home with one unit occupied by the borrower
HUD-approved condominium project
Individual Condominium Units that meet FHA Single Unit Approved requirements
Manufactured home that meets FHA requirements
Income, assets, monthly living expenses, and credit history will be verified.
Timely payment of real estate taxes, hazard and flood insurance premiums will be verified
Remember proceeds from your reverse mortgage, cash or LOC are non-taxable.
For adjustable interest rate mortgages, you can select one of the following payment plans:
Tenure - equal monthly payments as long as at least one borrower lives and continues to occupy the property as a principal residence.
Term - equal monthly payments for a fixed period of months selected.
Line of Credit - unscheduled payments or in installments, at times and in an amount of your choosing until the line of credit is exhausted.
Modified Tenure - combination of line of credit and scheduled monthly payments for as long as you remain in the home.
Modified Term - combination of line of credit plus monthly payments for a fixed period of months selected by the borrower.
For fixed interest rate mortgages, you will receive the Single Non-Taxable Disbursement Lump Sum payment plan.
Mortgage Amount Based On
The amount you may borrow will depend on:
Age of the youngest borrower or eligible non-borrowing spouse
Current interest rate; and
the HECM FHA mortgage limit of $822,375; or
the sales price (only applicable to HECM for Purchase) *
Jumbo reverse mortgages (to $3,000,000) are also available. *
If you have an existing HECM reverse mortgage new lower rates may make it advantageous for you to refinance to a new HECM reverse mortgage *
If there is more than one borrower and no eligible non-borrowing spouse, the age of the youngest borrower is used to determine the amount you can borrow.
Source: US Department of Housing and Urban Development
* Call for information (720) - 951- 3921
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