FAQs about HUD’s Reverse Mortgage
The Home Equity Conversion Mortgage (HECM) is FHA’s reverse mortgage program, which enables you to withdraw some of the equity in your home. The HECM is a safe plan that can give older Americans greater financial security. Many retirees use it to supplement Social Security, meet unexpected medical expenses, make home improvements and more.
You can receive additional free information about reverse mortgages in general by contacting Becky Koontz, Frost Mortgage’s Certified Reverse Mortgage Professional (CRMP) at
Becky loves to help her clients to make the most out of their retirement, click the button below to read some of their testimonials:
- Reverse Purchase
- Reverse Refinance
A Reverse Purchase enables a borrower to purchase a home with down payment and no future mortgage payments. This is a perfect way to downsize or purchase a newer, more efficient home. A Reverse Refinance allows a borrower to either pay off an existing mortgage, receive a monthly check, a line of credit, or a combination of all three.
- All title holders must be age 62 or older.
- The home must be the borrowers’ primary residence, and must meet Federal Housing Authority (FHA) minimum property standards.
- The borrowers must have the financial resources to pay ongoing property charges including taxes and insurance
- Borrowers must live in the home
- Borrowers are also required to receive consumer information from a HECM counselor prior to obtaining the loan.
- Age of the youngest borrower or eligible non-borrowing spouse
- Current interest rate; and
- Lesser of appraised value or the HECM FHA mortgage limit of $625,500 or the sales price
If there is more than one borrower and no eligible non-borrowing spouse, the age of the youngest borrower is used to determine the amount you can borrow.
- Tenure– equal monthly payments as long as at least one borrower lives and continues to occupy the property as a principal residence.
- Term– equal monthly payments for a fixed period of months selected.
- Line of Credit- unscheduled payments or in installments, at times and in an amount of your choosing until the line of credit is exhausted.
- Modified Tenure– combination of line of credit and scheduled monthly payments for as long as you remain in the home.
- Modified Term– combination of line of credit plus monthly payments for a fixed period of months selected by the borrower. For fixed interest rate mortgages, you will receive the Single Disbursement Lump Sum payment plan.
- Single Disbursement Lump Sum – a single lump sum disbursement at mortgage closing.