Features

• Homeowners must take a consumer information seminar aimed at helping them understand the implications of obtaining a reverse mortgage. Trained reverse mortgage counselors explain the loan process to the homeowners, including terms of repaying the refinance loan.
  
  

Significance

• Homeowners must be at least 62 years old to be eligible for the FHA reverse mortgage program. This government program provides America's aging population with quick funds whenever necessary.
  
  

Identification

• The owner must own the home or have a small remaining loan. In the latter case, FHA requires the owner to obtain an advance for the remaining mortgage amount. FHA limits the refinance loan figure to what the home is currently worth.
  
  

Considerations

• The homeowner must not have outstanding federal debts or delinquencies. If the owner decides to move, the reverse loan becomes due immediately.
  
  

Warning

• The borrower must use the home as her primary residence. Typically, the property is a single family residence. Loans are usually not extended to cooperative units or mobile units.
  
  This is general information for educational purposes. This information should not be used as a substitute for competent legal advice from a licensed attorney in your state.