REVERSE MORTGAGE
Complete Guide to FHA-Insured HECM Reverse Mortgage Rules for 2023
Looking for a simple way to get money in retirement? An FHA-Insured HECM Reverse Mortgage might be for you. Started in 1961, reverse mortgage loans are safer every year. Thanks to rules from the Federal Housing Administration (FHA), you can trust them more than ever in 2023.
5 Basic Rules to Get a HECM Reverse Mortgage
- Age: You should be at least 62.
- Ownership: You need to own your home.
- Home Value: Have lots of equity in your home or own it completely.
- Living There: The home must be where you mainly live.
- Financial Checkup: Lenders will look at your finances.
More Rules You Need to Know
See more details here.
What to Do After Getting the HECM Loan?
After getting this FHA-backed reverse mortgage, keep some things in mind:
- Bills: Keep paying your home insurance and property taxes.
- Rules: Stick to the loan rules. For example, you must live in your home.
Why an FHA-Insured HECM Laon is Good for You
- Safe Bet: You’re not at risk if your loan amount goes higher than your home value.
- Only Home at Risk: If things go south, only your home can be used to settle the loan debt.
- Forever Home: You are able to live in the home for the rest of your life regardless of the loan balance.
Extra Safety Features of the HECM loan
- Talk to an Expert: The FHA requires that you to talk to an approved counselor.
- Year One Limit: You can only use 60% of the loan amount in the first year.
- Financial Check: Lenders make sure you can afford ongoing costs like taxes.
FHA HECM Mortgage Updates to Keep in Mind
- Help for Spouses: If you pass away, your spouse can stay in the home. Read more in our other post.
- Money Check: Lenders will look to make sure you can afford to maintain obligations when you apply for a HECM Mortgage.
The FHA’s reverse mortgage rules are engineered to protect you as a borrower. By adhering to these guidelines, you can confidently integrate a reverse mortgage into your retirement planning strategy, enjoying a more financially secure future.
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