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.
Reverse mortgage insurance provides powerful benefits to homeowners seeking a secure reverse mortgage solution. By collecting the insurance FHA guarantees unique features for the life of your loan you won’t find in any private non-FHA programs.
Because of continuing multibillion-dollar insurance-fund losses, FHA has tried to rein in the reverse-mortgage program by limiting the amounts seniors can borrow against their houses, raising.
But in recent years, the reverse mortgage program has been a drain on FHA’s flagship Mutual Mortgage Insurance Fund. In November, FHA’s annual Report to Congress revealed that the HECM program bled.
Reverse Mortgage Percent Of Value How much money can you get from a reverse mortgage? – Reverse Mortgage Bottom , the older a borrower the larger percent of their home’s equity they can gain access to with a reverse mortgage. As the examples above show a range of 55% to 65% of their home’s value, its possible that a 90 year old can get access to 80% of the value.
An FHA insured reverse mortgage is called a Home Equity Conversion Mortgage, (HECM). They have numerous safeguards built in to the process as well as a few that have been added over the years. No Required Mortgage Payments – There are no monthly payments required with a HECM reverse mortgage.
An initial mortgage insurance premium: There is an initial and annual mortgage insurance premium charged by your lender and paid to the Federal Housing Administration. Mortgage insurance guarantees that you will receive your expected loan advances. This insurance is different and in addition to what you have to pay for homeowners insurance.
An FHA-insured reverse mortgage can provide retirement income for individuals who need more flexibility with their finances. This type of loan is more structured and it has an upper limit on the amount that can be borrowed.
Reverse Mortgage Loan Interest Rates Fha Reverse Mortgage Loan Limits The 2017 FHA loan limits correspond with the rise of conforming loan limits next year as announced by the federal housing finance Agency. The increased loan limits for FHA forward mortgages will be felt in most counties in the U.S. while all areas in the country will benefit from a higher reverse mortgage limit, effective January 1, 2017.The American Advisors Group (AAG) offers reverse mortgage loans that. the types of loan products offered, interest rates and closing costs.
The federally-insured reverse mortgage – Home Equity Conversion Mortgages (HECMs) – are insured by the Federal Housing Administration (FHA). FHA requires a Mortgage Insurance Premium (MIP) to be collected at closing and during the life of the loan. These premiums are charged to the borrower’s loan balance.