Primary Residences only.
Borrower still retains ownership of their home.
Borrowers do NOT need to own their home "free and clear" in order to qualify for a Reverse Mortgage.
No Pre-payment penalty.
Social Security and Medicare generally not affected.
Non-Recourse Loan Feature means FHA guarantees that the borrower will not owe more than the home is worth at the time of sale.
(Lesser of Mortgage balance, or 95% of market value, includes special options for the heirs).
Payout option of the Reverse Mortgage Proceeds for the Fixed Rate HELOC: Lump Sum at close, only.
Payout options for Libor ARM: Any combination of these: Initial Draw from 0-100%, Tenure (lifetime payments), Term, and or Line of Credit.
FHA HECM programs options include: Fixed Interest rate HECM's and Libor ARM HECM's with multiple variations and configurations.
HECM Counseling session is required for All Reverse Mortgage borrowers which takes about an hour and can be done on the phone or in person.
Mortgage Professional will include in your disclosures a fully-compliant list of local and national agencies for YOU to select to get certificate.
A Reverse Mortgage is a Non-Recourse Loan.
FHA Insured Reverse Mortgages do not have a Prepayment Penalty.
Funds for repairs to the house can be side-aside to be completed after closing which are not critical to safety issues, other need to be done upfront.