Are there different types of reverse mortgages?
Yes. There are several kinds of reverse mortgage loans: (1) those insured by the Federal Housing Administration (FHA); (2) proprietary reverse mortgage loans that are not FHA-insured; and (3) single-purpose reverse mortgage loans offered by state and ...
Can my partner, family, or dependents live in my home if I have a reverse mortgage?
As long as you still live in the home, having a reverse mortgage does not change who can live with you. Most reverse mortgages today are Home Equity Conversion Mortgages (HECMs). The Federal Housing Administration (FHA), a part of the ...
How much will a reverse mortgage loan cost?
The cost of a reverse mortgage loan will depend on the type of loan and the lender you choose. Typically, a reverse mortgage loan is more expensive than other home loans. With a reverse mortgage loan you will owe the ...
If I take out a reverse mortgage loan, does the lender own my home?
No. When you take out a reverse mortgage loan, the title to your home remains with you. Most reverse mortgages are Home Equity Conversion Mortgages (HECMs). The Federal Housing Administration (FHA), a part of the Department of Housing and Urban ...
When do I have to pay back a reverse mortgage loan?
Reverse mortgage loans typically must be repaid either when you move out of the home or when you die. However, the loan may need to be paid back sooner if the home is no longer your principal residence, you fail ...
Should I use a reverse mortgage to consolidate my debts?
Using a reverse mortgage loan to consolidate debt can be risky. If you fail to fulfill the obligations of the loan, you put your home at risk of foreclosure. Reverse mortgage loans are sometimes marketed as a way to use ...
Reverse mortgage loans typically must be repaid either when you move out of the home or when you die. However, you may not need to immediately pay it back if you are away from your home for more than 12 ...
Can I use a reverse mortgage loan to buy a home?
Yes. There is a “Home Equity Conversion Mortgage (HECM) for Purchase” loan that allows people 62 and older to purchase a new principal residence with HECM loan proceeds. A “HECM for Purchase” loan requires that you be 62 years of ...
With a reverse mortgage loan, can my heirs keep or sell my home after I die?
It depends. If there are no co-borrowers or an eligible non-borrowing spouse, your heirs will need to pay the full loan balance to keep the home. To sell it, they would need to repay the full loan balance or at ...
A Home Equity Conversion Mortgage (HECM), the most common type of reverse mortgage, is a special type of home loan only for homeowners who are 62 and older. A reverse mortgage loan, like a traditional mortgage, allows homeowners to borrow ...
What are my responsibilities as a reverse mortgage loan borrower?
There are three main requirements that you must fulfill if you have a Home Equity Conversion Mortgage (HECM), the most common type of reverse mortgage loan. If you don’t meet these requirements, you could lose your home to foreclosure. As ...
Can anyone take out a reverse mortgage loan?
No. Home Equity Conversion Mortgages (HECMs), the most common type of reverse mortgage loan, are a special type of home loan available to homeowners who are 62 and older. Aside from age, other reverse mortgage requirements include: Your home must ...
Act quickly. If you delay or ignore the notice, you could lose your home to foreclosure. None There are several ways you may have fallen into default on your reverse mortgage loan. You were late or missed paying your property ...
If you can’t pay your property taxes or homeowners insurance, look for help right away. Home Equity Conversion Mortgages (HECMs), the most common type of reverse mortgage loan, require that you keep current on your property taxes and homeowners ...
What happens if I have a reverse mortgage and I want to sell my home?
When you sell your home your reverse mortgage loan will need to be paid back. None If you decide to sell your home while you have a reverse mortgage loan, you will have to pay back the money you borrowed ...
What happens if my reverse mortgage loan balance grows larger than the value of my home?
If your loan balance is more than the value of your home, you or your heirs may not have to pay the difference. None If you owe more than your home is worth, but sell your home for the appraised ...
Yes, if you are in military service, the Servicemembers Civil Relief Act (SCRA) limits the amount of interest you can be charged for certain loans or other obligations you took out prior to entry into active-duty military service to 6 ...
If you are considering a reverse mortgage loan, start by understanding how one works and how it will affect you now and in the future. A detailed discussion with a reverse mortgage counselor will give you important information to help ...
What is covered under the Military Lending Act?
Payday loans, overdraft lines of credit, and most installment loans are covered by the Military Lending Act. As of October 3, 2016, most types of consumer loans offered to active-duty servicemembers and their dependents have to comply with the ...
Will I receive the Know Before You Owe disclosures when I shop for a mortgage?
If you applied for a mortgage on or after Oct. 3, 2015, you should have received the forms in most cases. The CFPB has created interactive tools and resources to help you shop for a mortgage, review your Loan Estimate, ...
How much money can I get with a reverse mortgage loan, and what are my payment options?
How much you can borrow depends on your age, the interest rate you get on your loan, and the value of your home. You have three main options for receiving your money: through a line of credit, monthly payout, or ...
The Department of Veterans Affairs (VA) offers loan programs to help servicemembers, veterans, and their families buy homes. The VA sets the rules for loan qualification, arranges the terms under which mortgages may be offered, and guarantees any loan ...
What happens to my reverse mortgage when I die?
Reverse mortgage loans typically must be repaid when you die. None What happens to the reverse mortgage will depend on several factors, including: Whether you have a co-borrower on the reverse mortgage loan, When you took out the reverse mortgage, ...
