Government Insured Reverse Mortgage Lenders all provide the EXACT SAME HECM Products and they are: government insured home equity loan for seniors with some special features, benefits and qualifications.
The most popular program is called a “HECM,”
(HOME EQUITY CONVERSION MORTGAGE) provided by
FHA/HUD, The Insurer and Fannie Mae, from whom the funds come from.
Qualifications:
Minimum age for any borrower is 62 years old.
Own a single family home, town home, condo or a 1 to 4 unit building and in all cases the borrower must reside there as the primary residence.
Does not have to be debt free.
There are no income or credit qualifications.
Features:
The borrower is required to pay the property taxes and hazard insurance.
The borrower retains ownership of the property.
The borrower is required to participate in a free reverse mortgage counseling session by a HUD approved counseling agency (Consumer Protection).
Benefits:
Receive income for life, a lump sum, a line of credit, or a combination of all three
No repayment of the loan is required as long as the borrower resides in the home as their primary residence.
Income from a reverse mortgage is tax free (consult your tax advisor).
