Reverse Mortgage Rules

Reverse mortgages allow people 62 and older to tap their home equity without having to pay the money back until they move out sell the house or die.

Reverse mortgage rules. Reverse mortgage loan formula is nothing but 60-90 market value of the home will be given as loan. A borrower must maintain the home as hisher primary residence. You can borrow up to 55 of the current value of your home.

You must use the proceeds of your reverse mortgage to pay off the balance of your conventional mortgage. A reverse mortgage is a mortgage loan usually secured by a residential property that enables the borrower to access the unencumbered value of the property. The youngest borrower on title must be at least 62 years old live in the home as their primary residence and have sufficient home equity.

Homeowners need to own their home outright or have a low enough mortgage balance that it can be paid off with the reverse mortgage. This is sometimes called equity release. These loans are insured by the Federal Housing Administration or FHA.

You must be 62 years of age or older. Most reverse mortgages are part of a government program called the Home Equity Conversion Mortgage. The HECM is FHAs reverse mortgage program that enables you to withdraw a portion of your homes equity.

Borrowers can take payouts as lump sums. The only reverse mortgage insured by the US. Federal Government is called a Home Equity Conversion Mortgage HECM and is only available through an FHA-approved lender.

Below are a few factors that go into determining eligibility and how much money can be received. The basic requirements to qualify for a reverse mortgage loan include. The FHA reverse mortgage limit has been increased from 765600 to 822375 which is an increase of 56775.