There are requirements for an FHA-insured reverse mortgage or HECM;

• The loan is based on the age of the youngest borrower if there are co-signers.
• Homeowners are required to get consumer counseling and education before a HECM loan is approved.
• Borrowers must own and live on the property as the primary residence.

Unlike other FHA loans, there are no income or credit qualifications for this type of loan. You will be required to have a current appraisal on the property as the amount of an FHA reverse mortgage is based on the home’s value or the FHA insurance limit, whichever is lower. The FHA reverse mortgage:

Eligible Properties:

• Single Family.
• 1-4 Unit Properties (Duplex, Triplex or Fourplex)
• Some Manufactured Homes
• FHA Approved Condominiums and Townhouses
• Newly Constructed properties must have Certificate of Occupancy (C.O.)

Qualifications:

• Homeowner must be 62 years old or older.
• No second/vacation or investment home.
• must have considerable home equity or must provide monetary investment at closing from allowable funding source.
• Home meets minimum  FHA property standards.
• Occupy property as primary residence within 60 days
• Mandatory Counseling session.
• Taxes & home insurance paid by client and cannot be escrowed.

• This is a loan based on current interest rates.
• Allows closing costs to be financed in the reverse mortgage.
• This is for single-family homes or up to a four-unit home.  (Duplex, Triplex or Fourplex – but one unit must be occupied by the borrower)
• This is also permitted for FHA-approved condominiums and some manufactured homes.

Limit of the loan for this program is $$1,209,750