What is a reverse mortgage?
A reverse mortgage is a type of home loan that lets you convert a portion of the equity in your home into cash. The equity that you have acquired over years of making mortgage payments can be paid to you. However, 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. Also, you are able to 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.
Can I qualify for FHA’s HECM reverse mortgage San Diego?
To be eligible for a FHA HECM, the FHA requires that you be a homeowner 62 years of age or older, own your home outright, or have a low mortgage balance that can be paid off at closing with proceeds from the reverse loan, have the financial resources to pay ongoing property charges including taxes and insurance, and you must live in the home. Also, you are required to receive consumer information free or at very low cost from a HECM counselor prior to obtaining the loan. You can find a HECM counselor online or by calling (800) 569-4287.
Can I apply for a HECM even if I did not buy my present house with FHA mortgage insurance?
Yes. You can apply for a HECM regardless of whether or not you purchased your home with an FHA-insured mortgage.
What types of homes are eligible?
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 qualified.