Do I Qualify?
To be eligible for a HECM, you must be a homeowner 62 years of age or older, own your home outright, or have an existing mortgage balance that can be paid off at closing with proceeds from the reverse mortgage, and you must live in the home. In addition, your home must be your primary residence and meet U.S. Department of Housing and Urban Development (HUD) minimum standards. You will also be required to receive consumer information from a HECM counselor prior to obtaining the loan. You can find a HECM counselor online, or by contacting Steve Eastman for a list of HUD approved counselors to choose from.
To be eligilble for the FHA HECM reverse mortgage, your home must be a single-family home, or a 2-4 unit home with one unit occupied by the borrower. FHA-approved condominiums are also eligible.
Borrower Requirements:
- 62 years of age or older
- Own your home (houses and some condos qualify; those with existing mortgages may also qualify)
- Occupy the property as your principal residence
- Not be delinquent on any federal debt
- Participation in a telephone consumer counseling session with a HUD counselor
Mortgage Amount Based On:
- Age of the youngest borrower
- Current interest rate
- Lesser of the appraised value, or the FHA mortgage lending limit
- Product that you choose – Saver or Standard
Financial Requirements:
- Show that income is adequate to pay for on-going obligations such as taxes, homeowners insurance and property maintenance.
- No monthly payments, and no repayment of the loan as long as you live in the home and the obligations of the mortgage are met.
- Closing costs may be financed in the mortgage.
