| A reverse mortgage is becoming a very serious | | | | your age and the value of the home and/or the FHA |
| consideration for many seniors in these difficult | | | | mortgage limit in your area. You don't make payments |
| economic times. There are many things you need to | | | | although you are still required to pay all real estate |
| know and much research needs to be done, but here | | | | taxes, insurance and utilities. |
| are what I consider the top 8 things to know. | | | | 6. You do not need to repay the loan as long as you |
| 1. The primary source of reverse mortgages is FHA | | | | continue to have the home as your primary residence. |
| which provides what are called HECM's (home equity | | | | It will be paid in full from the ultimate sale, either by you |
| conversion mortgages). These are special types of | | | | or by your heirs. |
| loans which allow you to convert equity in your home | | | | 7. Your estate will be diminished by the amount of the |
| of cash, either in lump sum or by receiving payments | | | | mortgage debt, plus accrued interest, and whether |
| over time. | | | | there will be any remaining equity in the home at time |
| 2. Any homeowner at least 62 years of age | | | | of sale will strictly depend upon the sale price of the |
| (youngest borrower), with large equity in the home and | | | | home. If there is remaining equity after the loan is paid |
| living in it as their primary residence may obtain a | | | | in full it will go to you or your heirs. |
| reverse mortgage (HECM). There is much information | | | | 8. If the amount of the loan at the time of ultimate sale |
| you need to know, but these are the three primary | | | | exceeds the price received the difference will be paid |
| considerations. | | | | by FHA under their insurance program which you will |
| 3. You can obtain a HECM even if you did not | | | | have paid into at the time of origination of your |
| purchase the home with an FHA loan. | | | | mortgage. You and/or your heirs will never be held |
| 4. The home must be a single family (including HUD | | | | liable in the event the mortgage payoff at time of sale |
| approved condominium) home or a 1-4 unit building in | | | | exceeds the price received. |
| which you occupy one unit as your primary residence. | | | | There are, as noted at the beginning, many |
| FHA approved manufactured homes are also eligible. | | | | considerations, but these are certainly in the top 8 of |
| 5. You don't need to meet any income qualifications or | | | | what you should know. |
| credit scores. The amount available depends upon only | | | | |