Older homeowners today have programs which allow them to benefit from the equity that they have built up in their homes over the years. One such loan program is the FHA mortgage reverse loan, also known as the Home Equity Conversion Mortgage (HECM). Just like every other reverse mortgage loan, the FHA HECM loan gives you an opportunity to cash in your chips on one part of the value of your home. However, unlike other reverse mortgage loans, the FHA HECM loan is unique, as it does not require the borrower to make any payments until he or she stops using his home as a primary residence. One great advantage of this program is that it’s fully backed by the Government and Federal Housing Administration (FHA) With this piece of mind you know it’s a safe bet.
This Florida HECM program can be a huge advantage for many Florida homeowners and here’s why. The advantage that the borrower stands to gain is that as long as he meets the requirements of the FHA reverse mortgage loan, he can use the monetary value of his home’s equity according to his wishes.
So what are the qualifying requirements for the FHA reverse mortgage loan?
Just like every other reverse mortgage loan, the FHA HECM also requires its borrowers to be above the age of 62. Additionally, the borrower must own their home outright, or should have a very low remaining balance so that the FHA HECM would pay off the remaining amount once the HECM loan gains approval. The property can be a single or family unit as long as the borrower occupies one unit. Most homes qualify as long as they meet the requirements of the FHA.
FHA HECM is different from conventional reverse mortgages as the borrower is required to seek financial counseling from a designated counselor for the HECM. One of the biggest advantages of the FHA HECM program is that it is applicable to both FHA mortgage loans as well as any other loan. However, borrowers cannot borrow more than the total value of the home. The amount of loan that is sanctioned is determined by the prevailing interest rates, the appraised value of the property as well as the credit report. Before applying for an FHA HECM loan, always ensure that your lender is FHA approved and that you have paid off all remaining balance during the closing time of your new loan.
FHA Mortgage Source is Florida’s leading FHA loan resource. Please call us at ph: 800-743-7556 or submit the quick Info Request Form on the right side of this page. Mobile users will find the Info Request Form here.
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