{"id":19,"date":"2018-02-06T15:21:08","date_gmt":"2018-02-06T15:21:08","guid":{"rendered":"http:\/\/gpswp.com\/safunding2\/?page_id=19"},"modified":"2020-05-29T15:10:55","modified_gmt":"2020-05-29T15:10:55","slug":"faq","status":"publish","type":"page","link":"https:\/\/gpswp.com\/safunding2\/all-about-reverse-mortgages\/faq\/","title":{"rendered":"FAQ"},"content":{"rendered":"

Overview Of Reverse Mortgage loans<\/h2>\n

The Home Equity Conversion Mortgage (HECM) is the name for the FHA-insured* and government-regulated reverse mortgage program. (*It insures that payments due the consumer post-closing will be made if the lender fails to do so) It enables you to withdraw some of the equity in your home with no requirement of repayment for as long as you live in the home. The HECM is a safe plan that can give older Americans greater financial security. Many retirees use it to supplement Social Security, meet unexpected medical expenses, make home improvements and more. You can receive additional free information about reverse mortgages in general by contacting the National Council on Aging at (800) 510-0301<\/a> or downloading their free booklet, “Use Your Home to Stay at Home<\/strong>,” a guide for older homeowners who need help now. It is smart to know more about reverse mortgages, and decide if one is right for you!<\/p>\n

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What is a Reverse Mortgage loan?
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A reverse mortgage is a special type of home loan that lets you convert a portion of the equity in your home into cash. The equity that you built up over years of making mortgage payments can be paid to you.  Unlike a traditional home equity loan or second mortgage, HECM borrowers do not have to repay the HECM loan until the borrowers no longer use the home as their principal residence or fail to meet the obligations of the mortgage, such as pay for property taxes and insurance. You can also use a HECM to purchase a primary residence if you are able to use cash on hand to pay the difference between the HECM proceeds and the sales price (plus closing costs) for the property you are purchasing.<\/div>\n<\/div>\n<\/div>\n
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Can I qualify for FHA\u2019s HECM Reverse Mortgage?
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To be eligible for a reverse mortgage, you must be least 62 years old, as well as own and live in your home. Secondly, there must be enough equity in the house to pay off any outstanding balances. In addition, you are required to receive consumer information free or at very low cost from a HECM counselor<\/a> prior to obtaining the loan. Find a HECM Counselor online or by phoning (800) 569-4287<\/a>.<\/div>\n<\/div>\n<\/div>\n
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Can I apply for a HECM, even if I did not buy my house with FHA Mortgage Insurance?
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Yes. You may apply for a HECM regardless of whether or not you purchased your home with an FHA-insured mortgage.<\/div>\n<\/div>\n<\/div>\n
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What types of homes are eligible?
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To be eligible for the FHA HECM, your home must be a single family home or a 2-4 unit home with one unit occupied by the borrower. HUD-approved condominiums and manufactured homes that meet FHA requirements are also eligible.<\/div>\n<\/div>\n<\/div>\n
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What are the differences between a reverse mortgage and a home equity loan?
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With a second mortgage, or a traditional home equity line of credit, borrowers must have adequate income to qualify for the loan, and they must make monthly payments on the principal and interest. A reverse mortgage is different, because it pays you \u2013 there are no monthly principal and interest payments. With a reverse mortgage, you are only required to pay real estate taxes, utilities, and hazard and flood insurance premiums.<\/div>\n<\/div>\n<\/div>\n
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Will we have an estate that we can leave to heirs?
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When the home is sold or no longer used as a primary residence, the balance of the HECM loan must be repaid. All proceeds beyond the amount owed belong to your estate. This means any remaining equity can be transferred to heirs according to will or trust. The government insurance guarantees that no debt is passed along to the estate or children, church, or charity.<\/div>\n<\/div>\n<\/div>\n
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How much money can I get from my home?
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The amount you may borrow will depend on:<\/p>\n