Sonya Gonzalez Important Guidelines To Abide By If Choosing HUD Reverse Mortgage

One of the programs offered by the U.S. Department of Housing plus Urban Development (HUD) is reverse mortgages for seniors thru its Home Equity Conversion Mortgage (HECM) program. The program is managed by the Federal Housing Authority (FHA), that is one of HUD’s agencies. The reverse mortgage program permits senior voters that meet some necessities to withdraw the equity they have built up in their home, where the FHA reverse mortgage pays the home-owner instead of the homeowner paying the mortgage lender.  

 The initial set of needs required for the HUD reverse mortgage program are requirements [that the] borrower must meet. The first requirement [is that the] senior citizen needs to be at least sixty-two years or older to apply for a reverse mortgage. The home-owner has to own the property which he intends on putting the reverse mortgage on outright, which means he does not have an existing mortgage on the property. Reverse mortgage candidates even cannot owe any federal agency money. Finally, to qualify for the HUD reverse mortgage program, the home-owner must attend an information session with an approved HECM counselor.  

[In order to] qualify for the reverse mortgage, seniors do not have to meet any income or credit necessities, so the borrower does not need to prove a particular quantity of income or have a minimum credit score. So long as the senior lives in the home as her primary residence, the home-owner is not needed to pay the reverse mortgage. The senior has the possibility to finances the closing fees and fees associated with establishing the reverse mortgage.  

The types of properties which are eligible for reverse mortgages under the program are single family homes plus homes that are made of one to four units, where the borrower occupies one of the units as his primary residence. Condominiums are eligible but are subject to approval by HUD. Manufactured homes and mobile homes are even eligible properties, but they are already at the mercy of approval by the FHA. No matter what type of property it’s, it looks needed that it be the primary residence of the senior citizen applying for the reverse mortgage. Second homes, vacation homes and investment properties are not eligible properties.