Looking for housing options for you, an aging parent, relative, or friend? Do some research first to determine what kind of assistance or living arrangement you need – is a reverse mortgage right for you?
Senior homeowners age 62 and older can use FHA-insured reverse mortgages to convert the equity in their homes into monthly streams of income and/or a line of credit to be repaid when they no longer occupy the homes. The loan, commonly known as Home Equity Conversion Mortgage or HECM, is with by a lending institution such as a mortgage lender, bank, credit union or savings and loan association. Homeowners are required to receive consumer education and counseling by an approved HECM counselor so they can be sure this program meets their needs.
HECM housing counselors will discuss program eligibility, financial implications and alternatives to obtaining a HECM plus provisions for the mortgage becoming due and payable. Upon the completion of HECM counseling, you as a homeowner should be able to make an independent, informed decision of whether this product will meet your needs.
Homeowners who meet the eligibility criteria can complete a reverse mortgage application by contacting a FHA-approved lending institution such as a bank, mortgage company, or savings and loan association. If you need assistance locating a FHA-approved lender, you can request a listing of FHA-approved lenders from the HECM counselor or use HUD's searchable listing. |
