Reverse Mortgage - New HUD Guidelines Save Seniors Thousands

Reverse mortgages are increasing in popularity with seniors who have equity in their homes and want to supplement their income. The only reverse mortgage insured by the U.S. Federal Government is called a Home Equity Conversion Mortgage or HECM, and is only available through an FHA approved lender.

The New HUD Reverse Mortgage

The Home Equity Conversion Mortgage (HECM) is FHA's reverse mortgage program which enables you to withdraw some of the equity in your home. You choose how you want to withdraw your funds, whether in a fixed monthly amount or a line of credit or a combination of both.

The new regulations give lenders the option to charge reduced origination and servicing fees. Complete elimination of these fees can save approximately $5,000 to $10,000 on the average loan.

Be aware that some lenders will say they have eliminated the fees but have hidden them in the interest rate. Be sure to speak with a HUD approved reverse mortgage lender.

An easy way to find an approved lender is to complete the request form located on the HUD Reverse Mortgage Program website or by calling toll-free 1-800-871-9012 extension 495253. You can request a free DVD and brochure by visiting the site or calling the toll-free number.

These loans can give older Americans greater financial security to supplement social security, meet unexpected medical expenses, make home improvements, and more.

Borrower Requirements

You must:

• Be 62 years of age or older



• Own the property outright or have a small mortgage balance



• Occupy the property as your principal residence



• Not be delinquent on any federal debt



• Participate in a consumer information session given by an approved HECM counselor