Table of Contents
What are the new rules for reverse mortgage?
4 Rules that Apply to Reverse Mortgages in 2021
- There’s a Lending Limit For HECM Loans.
- Reverse Mortgage Counseling is a Must.
- Only Certain Property Types Qualify.
- Non-Borrowing Spouse Protections May Apply.
- Homeowners Can Choose Among Several Payment Options.
Can a family member assume a reverse mortgage?
Formally called ‘home equity conversion mortgages’ (HECMs), reverse mortgages are available to homeowners 62 years of age or older and allow these homeowners to pull equity from their paid-for homes. Reverse mortgages on inherited property are payable upon death, so heirs aren’t allowed to assume them.
What properties qualify for a reverse mortgage?
Homes That Could Qualify
- Single Family Homes. The most common type of home that qualifies for a reverse mortgage is a single-family home.
- Multi-Family Homes.
- Condominiums.
- Manufactured Homes.
- Farms on Agricultural Land.
- Second Homes and Vacation Homes.
- Mobile Homes.
- Co-ops.
Who can live in house with reverse mortgage?
As long as you still live in the home, a reverse mortgage does not change who can live with you. Most reverse mortgages today are Home Equity Conversion Mortgages (HECMs). The Federal Housing Administration (FHA), a part of the Department of Housing and Urban Development (HUD), insures HECMs.
What credit score do you need for a reverse mortgage?
There is no minimum credit score requirement for a reverse mortgage, primarily because the main thing lenders want to know is whether you can handle the ongoing expenses required to maintain the house. Lenders will, however, look to see if you’re delinquent on any federal debt.
What happens if I outlive my reverse mortgage?
When the last remaining borrower passes away, the loan has to be repaid. If your loan balance is more than the value of your home, your heirs won’t have to pay more than 95 percent of the appraised value. The remaining balance of the loan is covered by mortgage insurance.
When does a reverse mortgage have to be repaid?
updated AUG 30, 2019. Reverse mortgage loans typically must be repaid either when you move out of the home or when you die. However, the loan may need to be paid back sooner if the home is no longer your principal residence, you fail to pay your property taxes or homeowners insurance, or do not keep the home in good repair.
Where can I find a reverse mortgage counselor?
To find a reverse mortgage counselor near you, search the HECM Counselor Roster or call (800) 569-4287. To find a reverse mortgage counselor that provides telephone and face-to-face counseling nationwide, use the HUD Intermediaries Providing HECM Counseling Nationwide list.
How can I find out if my reverse mortgage is accurate?
It’s a good idea to check with your reverse mortgage servicer to make sure its loan records are accurate and that you and your co-borrower are both on the loan. Call your servicer to find out what names are listed on your loan.
What are the requirements for a FHA reverse mortgage?
The final requirement of a FHA-insured reverse mortgage is maintaining the home’s condition. The home must remain in good repair throughout the course of the loan, as determined by the loan’s servicer.