How to Shop for the Best Deal on an HECM Reverse Mortgage
The most common type of reverse mortgage is the Home Equity Conversion Mortgage (HECM), which is insured by the Federal Housing Administration (FHA). HECMs are subject to specific rules and regulations set by the U.S. Department of Housing and Urban Development (HUD). Private lenders also of...
Depending on the type of reverse mortgage, the cash can be distributed as a lump sum, installment payments, a line of credit similar to a home equity line of credit (HELOC), or a combination of any of these. To qualify for a reverse mortgage, you must first build up significant equity...
You work with an HECM counselor before obtaining the loan. You must meet the FHA’s standards for hazard and flood insurance. 2. Apply with an approved lender Not alllendersare approved by the FHA to sell HECM loans. While you might find lenders who offer non-HECM reverse mortgage, those...
You can negotiate a ‘pay-for-delete’ agreement with the collector, where they agree to remove the collection from your credit report upon payment. Always get this agreement in writing. What should I do if I’m sued by a debt collector?
The risk is so serious that the Federal Housing Administration (FHA) recently issued a letter reinforcing its prohibition against misleading or deceptive advertising and reminding lenders to make sure seniors are fully informed of all their options when they apply for an FHA reverse mortgage. ...
What are reverse mortgages, and how do they work? Click here for a complete Reverse Mortgage 101 from Longbridge Financial.
Quite simply, a reverse mortgage is a loan that pays the borrower instead of the borrower paying the loan. Also known as a Home Equity Conversion Mortgage, or HECM (pronounced HECK-um), reverse mortgages are only for homeowners age 62 and older. The purpose of a reverse mortgage is to he...
Reverse mortgage counselingmust be completed before a homeowner can apply for an HECM. It’s up to you to choose a lender and schedule a meeting. HUD encourages in-person counseling sessions whenever possible, though it does allow approved counselors to offerphone sessionswhen a face-to-face me...
The sixth option for receiving funds from a reverse mortgage is via a lump-sum payment at the loan closing. Regardless of the payment method, a home equity conversion mortgage (HECM) can provide much-needed income to those age 62 or older from the equity in their home.2 The plan that yo...