What is Reverse Mortgage?

A reverse mortgage, also known as a Home Equity Conversion Mortgage (HECM) is FHA's reverse mortgage program. Reverse mortgages is a loan secured by the home that does not need to be repaid until the borrower dies, sells the home or moves out permanently. To get aqualify for FHA’s reverse mortgage program, you must be at least 62 years old and own your home, which must be your primary residence. There are no income requirements. It's OK to have an existing mortgage, but you must be able to get enough from the reverse mortgage to pay it off. You remain responsible for home maintenance, taxes and insurance. 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.


  • Due to recent changes to the reverse mortgage program at HUD/FHA, you can also use a HECM to purchase a primary residence if you are able to use cash on hand to pay the difference between the HECM proceeds and the sales price plus closing costs for the property you are purchasing.

    A HECM calculator is available at imc.ibisreverse.com that can help you determine if you qualify for a reverse mortgage.

    A HECM can be obtained directly from a bank that offers this product, or through a mortgage broker. A list of all HUD FHA approved reverse mortgage lenders can be obtained at: www.hud.gov

  • Consolidated Credit Counseling Services is a HUD approved Housing Counseling Agency that provides HECM counseling. Prior to obtaining a HECM, Consolidated counselors will discuss the reverse mortgage program’s eligibility requirements, financial implications and HECM alternatives to obtaining a HECM. They will also discuss provisions for the mortgage becoming due and payable. Upon the completion of HECM counseling, you should be able to make an independent, informed decision of whether this producta reverse mortgage will meet your needs.

  • To arrange for a HECM counseling session you may call us directly at (866) 377-9275 or fill out the counseling request form and one of our housing counselors will contact you to set up a counseling session.

  • For further information on reverse mortgages, read Top Reverse Mortgage Myths, or the AARP has an excellent consumer guide to reverse mortgages entitled "Reverse Mortgage Loans: Borrowing Against Your Home" and can be obtained here: http://assets.aarp.org

       

       

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