A Reverse Mortgage will work for you if you meet the following criteria:
- Are you a homeowner over 62 years of age?
- Have you paid off your mortgage or paid down a large portion of your mortgage?
- Do you currently live in your home?
If you can answer yes to the above three questions, you are eligible to participate in the FHA’s HECM Program. This program is the only reverse mortgage insured by the U.S. Federal Government and is called a Home Equity Conversion Mortgage (HECM). The HECM is FHA’s reverse mortgage program that will enable you to withdraw a portion of your home’s equity. The amount available to you is dependent upon the factors below:
- The age of the youngest borrower or eligible non-borrowing spouse.
- The current interest rate.
- The appraised value of your home or the HECM FHA mortgage limit or the sales price.
- A financial assessment of your willingness and ability to pay property taxes and homeowners insurance.
In general, the older you are, the more equity you have in your home, and the less you owe on your home, the more money you can get.
To locate a reverse mortgage counselor near you, search the HECM Counselor Roster or call 800-569-4287.