Reverse Mortgage My House!! Debt Relief Is Here..
Has your curiosity been piqued by those recent television infomercials about Reverse Mortgages? Can a Reverse Mortgage help you if you need financial relief from making current home mortgage payments?
There are age restrictions for obtaining a Reverse Mortgage. It's only available to homeowners 62 years of age or older under certain conditions. The first Reverse Mortgage was created by the Federal Housing Administration (FHA) with a product called the Home Equity Conversion Mortgage (HECM). A reverse mortgage is a special category of home loan that allows the homeowner to convert a certain percentage of the home's equity into cash which may be needed for a variety of reasons, including emergencies, healthcare expenses or day to day living expenses.No repayment of the cash received is demanded until the homeowner no longer makes the home his or her primary residence.
Not everyone can qualify for an HECM offered by the FHA. You must be a homeowner 62 years of age or older, own your home outright, you must live in your home as your primary residence and have a remaining mortgage balance that is low enough to be paid off with the cash proceeds of the reverse loan. It does not matter that your home's current mortgage was FHA financed or not in order to qualify for a HECM.
Only single family homes, buildings with no more than 4 units, one of which is occupied by the owner applying for the HECM, and certain FHA-approved condominiums and mobile homes can qualify for this type of loan restructuring.