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FREQUENTLY ASKED QUESTIONS
ABOUT THE FHA HECM REVERSE MORTGAGE

Video-Introduction To Reverse Mortgages

Video-Introduction To Reverse Mortgages

The FHA reverse mortgage is a powerful retirement tool. If you are 62 years or older, and if your mortgage is less than half of the home’s value, you can take out an FHA mortgage that has no mandatory payments. The spouse younger than 62 is protected.

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Is an FHA Reverse Mortgage Expensive?

Is an FHA Reverse Mortgage Expensive?

A HECM reverse mortgage has closing costs that are comparable to standard FHA loans. The only cost that is higher with a HECM is that FHA mortgage insurance is higher. For a home with a $400,000 HECM line of credit, the FHA mortgage insurance might be around $16,000...

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Who cannot qualify for a reverse mortgage?

Who cannot qualify for a reverse mortgage?

A single borrower cannot qualify for an FHA HECM reverse mortgage if he is not at least 62 years old. A married couple cannot qualify for an FHA HECM reverse mortgage if neither borrower is at least 62 years old. At least one of the borrowers must be at least 62 years...

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Are there non-FHA reverse mortgages?

Are there non-FHA reverse mortgages?

There are non-FHA jumbo reverse mortgages that go up to $4 million, meaning jumbo borrowers can borrow up to around 50% of the value of the home, around $2 million. Borrowers can qualify at age 60 instead of 62. However, the spouse under 60 will not be able to inherit the mortgage.

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What if the house does not go up in value?

What if the house does not go up in value?

Sometimes the complaint is that the home has not appreciated in value or has gone down in value. Maybe the borrower has lived so long and drawn so much money that there is no equity left. Maybe it is under water. Maybe the home is located in a depressed area. Even if...

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Why do some advisors bad mouth reverse mortgages?

Why do some advisors bad mouth reverse mortgages?

Most reverse mortgage critics do not know about the changes made in 2014, 2019, and 2021. Recall that these changes allow a non-borrowing spouse under age 62 to enjoy the benefits of the HECM as long as she lives and lives in the property. Most criticisms come from...

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What If My Home Needs Repairs?

What If My Home Needs Repairs?

Can you get an FHA HECM reverse mortgage if your home needs work? Yes. One of the aspects of the FHA HECM reverse us that it can be an FHA rehab loan. This works if you are using the FHA HECM to refinance your home or to buy a home.

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Is an FHA Reverse Mortgage Better Than A HELOC

Is an FHA Reverse Mortgage Better Than A HELOC

The HECM is a Home Equity Conversion Mortgage. One of its many features is that it is a HELOC that you can draw against. Mortgage payments are optional. The interest can accumulate while the value of the property in most places will increase faster than the interest...

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Have Reverse Mortgages Been Improved?

Have Reverse Mortgages Been Improved?

Have reverse mortgages been improved? YES Before 2014, if one spouse was under 62, the only way for the primary borrower, age 62 and over, to obtain a reverse mortgage was for the younger spouse to quitclaim off title and have the older spouse obtain the reverse...

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