FHA Reverse Mortgages for Seniors        

FHA Reverse Mortgages

Home Equity Conversion Mortgage    

The Home Equity Conversion Mortgage (HECM) is the oldest and most popular  fha reverse mortgage product, accounting for an estimated 90 percent of the total market. Available since 1989, HECMs are insured by the federal government through the Federal Housing Administration (FHA), a part of the U.S. Department of Housing and Urban Development.

The amount of available proceeds you can qualify for under the FHA Reverse Mortgages HECM program depends on your age, appraised home value, and current interest rates. The older you are, and the more valuable your home the more funds you qualify for. Another factor is your home's location. The size of a FHA Reverse Mortgages HECM depends on the maximum lending limit, which varies by county.  If your home's value exceeds the FHA lending limit, the amount of money you are eligible to receive will be calculated as if the value of the home is the area limit. Many of the upfront fees associated with the Reverse Mortgages HECM are capped by FHA.

Currently, you pay a mortgage insurance premium (MIP) equal to 2 percent of the maximum claim amount (the value of the home or FHA county lending limit, whichever is less), plus an annual premium thereafter equal to 0.5 percent of the loan balance. The MIP is paid directly to FHA in exchange for guaranteeing the loan.    The MIP guarantees that if the company managing your account - commonly called the loan “servicer” - goes out of business, the government will step in and make sure you have continued access to your loan funds. Furthermore, the MIP guarantees that you will never owe more than the value of your home when the FHA Reverse Mortgage HECM must be repaid. 

HUD limits the fee that a lender can earn to 2 percent of the maximum claim amount (again, this number is equal to the value of the home or FHA county lending limit, whichever is less). In addition to these two primary fees, you will also pay other standard closing costs associated with getting a mortgage, including title insurance, attorneys fees, recording taxes, etc.

Apply for your FHA Reverse Mortgages Apply Now via the internet