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Michael Brown Cheap Guidelines To Follow When You Are Selecting HUD Reverse Mortgage
April 4, 2010 by man
Filed under Michigan Refinance
1 of the programs offered by the U.S. Department of Housing and Urban Development (HUD) is reverse mortgages for seniors thru its Home Equity Conversion Mortgage (HECM) program. The program is managed by the Federal Housing Authority (FHA), that is 1 of HUD’s agencies. The reverse mortgage program permits senior citizens that meet certain requirements to withdraw the equity they even have built up in their home, where the FHA reverse mortgage pays the house owner rather than the house owner paying the mortgage lender.
The 1st set of requirements needed for the HUD reverse mortgage program are needs [that the] borrower has to meet. The first requirement [is that the] senior citizen must be a minimum of 62 years or older to qualify for a reverse mortgage. The home-owner needs to own the property which he intends on putting the reverse mortgage on outright, which means he will not have an existing mortgage on the property. Reverse mortgage applicants also cannot owe any federal agency money. Finally, to qualify for the HUD reverse mortgage program, the home-owner must attend an data session with an approved HECM counselor.
[In order to] qualify for the reverse mortgage, seniors do not have to meet any income or credit needs, so the borrower will not have to prove a particular amount of income or have a minimum credit score. As long as the senior lives in the home as her primary residence, the house owner is simply not required to pay the reverse mortgage. The senior has the possibility to finances the closing costs plus fees related to establishing the reverse mortgage.
The kinds of properties which are eligible for reverse mortgages beneath the program are single family homes plus homes which are made of one to four units, where the borrower occupies 1 of the units as his primary residence. Condominiums are eligible but are susceptible to approval by HUD. Manufactured homes and mobile homes are additionally eligible properties, but they are subject to approval by the FHA. No matter what type of property it looks, it looks needed that it be the first residence of the senior citizen applying for the reverse mortgage. Second homes, vacation homes plus investment properties are not eligible properties.
