Mortgage Insurance for
Reverse Mortgages
What is the purpose of
this program?
Provides FHA mortgage insurance to elderly homeowners to convert the equity in their home
into monthly streams of income and/or a line of credit to be repaid when they no longer
occupy the home. The loan, commonly known as an FHA reverse mortgage, is funded by a
lending institution such as a mortgage company, bank, credit union and savings or loan
association.
Borrower Requirements:
- 62 years of age
- Own property
- Occupy property as principal residence
- Participate in a consumer information session
Mortgage Amount based
on:
- Age of the youngest borrower
- Current interest rate
- Lesser of property value or FHA insurance
limit
Financial Requirements:
- No income or credit qualifications
- No repayment as long as property is primary
residence
- Closing costs may be financed in the mortgage
Property Requirements:
- Single family residence or a one- to four-unit
dwelling with one unit occupied by borrower
- Unit in FHA-approved condominiums and Planned
Unit Developments
- Meets FHA minimum property standards (can fund
repairs in mortgage)
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