How do I Qualify - Image
To be eligible for a HUD reverse mortgage, HUD's Federal Housing Administration (FHA) requires that the borrower is a homeowner, 62 years of age or older; own your home outright, or have a low enough mortgage balance that can be paid off at the closing with proceeds from the reverse loan; and must live in the home. You are further required to receive consumer information from HUD-approved counseling sources prior to obtaining the loan.

Financial Requirements
Timely payment of real estate taxes and hazard insurance are confirmed and are relevant to the amount of money you may receive at closing.  Credit history, income, assets and monthly living expenses will also be verified. 

Can I apply if I didn't buy my present house with FHA mortgage insurance?
Yes. It doesn't matter if you didn't buy it with an FHA-insured mortgage. Your new HUD reverse mortgage will be a new FHA-insured mortgage loan.

What types of homes are eligible?
Your home must be a single family dwelling or a two-to-four unit property that you own and occupy. Townhouses, detached homes, units in condominiums and some manufactured homes are eligible. Condominiums must be FHA-approved. 

What's the out-of-pocket cost?
The out-of-pocket costs to you include the fee for mandatory reverse mortgage counseling and the cost of an appraisal.   An FHA licensed  appraiser determines how much your home is worth. A credit report is required to see if you are delinquent on any federally-insured loans or have any liens against the property, but it is not an out-of-pocket cost to you.

Most of the other costs can be "financed" with the loan. This means that you can use reverse mortgage funds advanced to you at closing to pay the costs due at that time, and later advances to pay any ongoing costs. The advances are added to your loan balance, and become part of what you owe – and interest is applied.

If a lender charges an origination fee that is greater than the amount that can be financed with the loan, you have to pay the difference in cash at closing.

Free Reverse Mortgage Analysis - Image