Home Equity Conversion Mortgages for Seniors
If you are 62 years or older, a homeowner and have significant equity in your home, you may be eligible for a Home Equity Conversion Mortgage (HECM) loan, commonly known as a reverse mortgage. The HECM is the only reverse mortgage insured by the U.S. Federal Government and is only available through FHA approved lenders.
HECM’s can be very helpful financial tools for those who are eligible. In addition to being at least 62 years old, some additional borrower requirements include:
- Can not being delinquent on any federal debt
- Must attend a session with a HUD-approved HECM counselor
- Owning the property outright, or at least having paid off a considerable amount of your mortgage
- Occupying the home as your primary residence
- Have financial resources to continue to make timely payment of ongoing property charges such as property taxes, insurance and Homeowner Association fees, etc.
The following eligible property types must meet all FHA property standards and flood requirements:
- Must be a Single family home or 2-4 unit home with one unit occupied by the borrower
- A HUD-approved condominium project
- Manufactured home that meets all FHA requirements