Are you considering an FHA reverse mortgage loan on your home? While there are many advantages to these types of loans, there are also some things you must know before moving forward with this loan.
FHA stands for the Federal Housing Administration, which is a branch within the United States Department of Housing and Urban Development (HUD). In order to qualify for this mortgage program, their are certain requirements the FHA has set. One of those is that the homeowner must be at least 62 years of age, or older. The FHA also provides insurance which makes the loan program less expensive for the borrowers then similar reverse mortgage programs offered by private lenders and smaller institutions.
The only other requirement the FHA question of you, other than being 62 years of age or older, is that you have equity in your home and small debt or mortgage against it. There is no other restrictions, required credit ratings, level of income or any other assets needed. If you are approved for an FHA reverse mortgage loan you can receive your loan in one of three options. You can take it all in one lump payment, in monthly installments for a fixed term, or indefinite term as a line of credit against the loan.
An FHA loan is paid off either when the homeowner passes away, moves out of the home, or sells the property. Then, HUD collects the proceeds from the sales. If those proceeds exceed the loan, then the difference is either awarded to the homeowner, if he is alive, or to the homeowner’s heirs. If the proceeds do not cover the amount of the loan, then HUD covers the difference.
The main benefit of these loans are that the homeowner is not required to make monthly payments against the loan. That is why they call it a reverse mortgage — because instead of you having to make payments each month, the leading institution is making payments to you — whether monthly, in one lump sum, or when you use it as a line of credit.
The way the amount of the loan is calculated has to do with the value of your home, the interest rates, the location of your home, as well as your age. These are some of major aspects of an FHA reverse mortgage to keep in mind.
Related FHA and HUD Posts
- Current Fha Mortgage Rates – Where Do You Stand
- Getting a Mortgage in 2010: 10 Things to Know
- Had a Short Sale – Do I now qualify for an FHA Loan in San Jose?
- Had a Short Sale – Do I now qualify for an FHA Loan in Bay Area?
- FHA Mortgage Rates Dip | Nationwide Mortgage
- BIG changes coming to FHA in 2010!
- FHA Changes Appraisal Requirements
- It’s just an ABS pad
- Is FHA The New Sub-Prime?
- FHA Loan Qualifications
- FHA Mortgage Rates, How To Get The Best Rates?
- FHA Mortgage Loan, The Basic
- FHA Mortgage San Antonio Texas FHA Loan Information
- Can I buy a new mobile home and land with an FHA loan?If not which loan?
- Florida FHA Loan, Florida FHA home loan, 97% Financing …
- Learning English: FHA Loans
- Trying For A Loan Modification With an FHA Loan Can Be Complicated …
- fha lender search,fha loans calculator,fha loans for dummie : Home …
- FHA Loans in a 21st Century Depression
- How can I lower my interest rate on my mortgage?
- Indy.com | Post: Getting pre-approved for a loan is your first …
- HUD changes to the FHA Condo Approval Process means delay for …
- FHA Home Loans vs Conventional Home Loans « Home Loans
- Salt Lake City Real Estate by Corie : Changes In FHA Financing …
- Nevada Real Estate >> Las Vegas Real Estate Specialist: Active …
- 10% down on a $550K home, must I have an FHA loan?
- Nevada Real Estate >> Las Vegas Real Estate Specialist: The Good …
- FHA Insider: Fraudulent home loans available … Abuse of the FHA …
- Who to streamline our mortgage through?
- Is the 1.75% Mortgage Insurance Premium (FHA loan) up front payment tax deductible in the tax year its paid?
- fha 100 loan,fha 30 year mortgage rates,fha home loan,fha l
- 25% of 2007, 2008 FHA Loans in Default | The Economic Populist
- Understanding HUD Guidelines for FHA Loans – Financial Web
- Master Short Sales · 90 Day FHA Seasoning Requirements
- FHA loan info, need Help!?
- Fixed 30 yr Jumbo Mortgage Question?
- How do I choose a mortgage lender in Michigan?
- Has anyone gotten an fha home loan with bad credit?
- When can my husband and I get a home mortgage?
- Tighter FHA loan rules won’t stall Sacramento home sales, experts say
- FHA Breaking News :: FHA Relaxes Resale Requirements!
- Lending Requirements on FHA Loans | Atlanta Real Estate Forum
- Dec 9th Market Update
- FHA home loan on a house that needs work.?
- what interest rate for a mortgage can i expect with a credit score around 580?
- 7 things to know about an FHA loan
- West Michigan real estate agents say new FHA loan rules make ‘new buyers pay for the mistakes of the old buyers’
- Can I get approved for a bigger mortgage if my rate goes down?
- Changes to FHA Loan Requirements | Huntsville Homes | Huntsville …
- FHA Breaking News :: New FHA Loan Requirements Won't Negatively …
Tags:
fha approved,
fha home equity,
fha loan,
FHA Loan Qualifications,
FHA Mortgage,
FHA Requirements,
fha reverse mortgage,
private lenders,
smaller institutions
This entry was posted
on Tuesday, January 13th, 2009 at 3:13 pm and is filed under FHA Mortgage.
You can follow any responses to this entry through the RSS 2.0 feed.
You can leave a response, or trackback from your own site.
Top incoming search terms for this post
Wherever you are facing foreclosure, Whant to know about how to improved your financial health, Learn about Reverse Mortgage. I Believe Education is The Best way to avoid Financial pitfalls.