As a senior who has worked hard all your life to provide a quality lifestyle for your family you deserve peace and the same quality lifestyle. Most Americans have the majority of their net worth tied up in the equity of their home. Many are still paying a mortgage. To access that equity and maintain your quality of life without making payments the federal government has made available the FHA insured reverse mortgage to make life easier for senior Americans. This is a loan offered through financial institutions not the federal government, but the program would not be possible and would not have all of its safe guards without the insurance through FHA (the Federal Housing Administration).
How to Qualify for a Reverse Mortgage.
To be eligible for Reverse - HECM Mortgage you must:
*** You must be 62 years of age or older.
*** Own your home.
*** Have a low mortgage balance or no mortgage at all.
*** Live in your home.
*** Complete a counseling class with a HUD approved counselor.
*** Own a Home that meets FHA eligibility requirements.
*** There are no credit qualification criteria.
*** There are no income or debt to income requirements.
What Types of Homes are Eligible?
For your home to be eligible for a FHA insured HECM Mortgage, it must be a single family attached or detached home or a 2, 3 or 4 unit home with at least one unit occupied by the senior borrower. HUD-approved condominiums, town homes and manufactured homes are also eligible. The homes must be without deferred maintenance that would be a safety risk to the occupants.
How Do I Receive Payments?
Once you have qualified and actually receive the loan you have a number of options to consider to get the equity from your home. The option you choose is based on your financial situation. For example some people do not need extra cash if just stop making mortgage payments. Some seniors can handle all of their bills but have no reserves for emergencies and can not pay their property taxes when they are do. Some seniors need help meeting daily living expenses. Whatever your situation is their is an option to help you enjoy your golden years without worrying about your finances.
Your options include:
$$$ Receive monthly payments as long as at least one borrower lives and continues to occupy the property as a principal residence.
$$$ Receive a lump sum payment of all the proceeds at closing.
$$$ Start a HECM line of credit to be used for whatever you want, whenever you want it. The money in your HECM line of credit is available to you whenever you need it until you use it all.
$$$ Combination of the three. You can choose to set up a line of credit and an annuity. You can withdraw a portion of your line of credit at closing to do a project immediately while still having funds available for future.
Regardless of how you choose to use the money from your FHA insured HECM reverse mortgage as a senior you can enjoy the peace of mind and quality of life you deserve without worrying about meeting monthly living expenses and using the equity in your home without making payments.