The Reverse Mortgage Program is a FHA approved mortgage program designed for seniors, age 62 and older, to take out a portion of their equity,providing their home is their principal residence. Unlike conventional home equity mortgages the borrower is not required to make any repayments on a reverse mortgage as long as the home remains their principal residence.The funds can be taken out in a lump sum, or have a monthly income from this loan. The repayment of this mortgage is done when the home is sold.
Meeting FHA Guidelines
Many seniors find themselves caught between a rock and a hard place when it comes to the home meeting the FHA Minimun Standards. Many older homes may need repairs or upgrades. the good news is the FHA program allows for these kinds of repairs and the costs are taken out of the settlement proceeds. Any needed repairs are noted by the FHA Approved Appraiser in the report. Estimates are obtained from reputable contractors and funds are helf in escrow for the repairs.