Reverse Mortgage

Information and lender assistance for the HUD reverse mortgage program.

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Working with a HUD approved lender in attaining a reverse mortgage is the first step towards a retirement in financial freedom. Homeowners 62 and older who have paid off their mortgages or have only small mortgage balances remaining are eligible to participate in HUD's reverse mortgage program. The program allows homeowners to borrow against the equity in their homes without the need to make monthly mortgage payments. Learn more by using our quick quote to get started today!

Qualified homeowners can receive payments in a lump sum, on a monthly basis (for a fixed term or for as long as they live in the home), or on an occasional basis as a line of credit. Homeowners whose circumstances change can conveniently restructure how they receive their payment options in the future.

Unlike ordinary home equity loans, a HUD reverse mortgage does not require repayment as long as the borrower lives in the home. Lenders recover their principal, plus interest, when the home is sold. The remaining value of the home goes to the homeowner, surviving spouse, or to his or her estate. If the sales proceeds are insufficient to pay the amount owed, HUD will pay the lender the amount of the shortfall. The Federal Housing Administration, which is part of HUD, collects an insurance premium from all borrowers to provide this coverage.

The loan amount of a reverse mortgage loan is based upon the borrower's age, the interest to be paid, and a home's appraised value. The older the borrower, the greater the percentage of the home's value that can be borrowed against. Use our quick quote to learn more!

There are no asset or income limitations on borrowers receiving HUD's reverse mortgages.

There are also no limits on the value of homes qualifying for a HUD reverse mortgage. However, the amount that may be borrowed is capped by the maximum FHA mortgage limit for the area (which varies depending on the cost of housing in your area). As a result, owners of higher-priced homes can not use the reverse mortgage program to borrow any more than owners of homes valued at the FHA loan limit.

HUD's reverse mortgage program collects funds from insurance premiums charged to borrowers. Senior citizens are charged 2 percent of the home's value as an up-front payment plus half a percent in annual premium, which is paid out on a monthly basis for the life of the loan. These amounts are usually paid by the lender and charged to the borrower's principal balance.

The FHA's reverse mortgage program typically involves fewer costs and makes the HUD insured program a lower cost option than comparable privately-run reverse mortgage programs. Use our quick quote to get started right away!