HOW DO YOU QUALIFY FOR AN FHA REVERSE MORTGAGE?

Age: One person must be at least 62 years old for a married couple, and all parties must be 62 if non-married in Colorado

Pay History and Credit: Are there late payments, bankruptcies, foreclosures, collections or any other derogatory debt over the last period of years? Pay history and credit will dictate a Life Expectancy SetAside vs no Life Expectancy SetAside (LESA vs. no LESA) when getting a reverse mortgage

Financial Assessment: Must pass basic residual income requirements determined by the FHA and dictated by the number of people living in the home

Property: Single Family Homes and Townhomes and 1-4 units properties must meet FHA standards. Condominiums must be FHA-approved or try and get spot approval during the application process

Occupancy: Must occupy the property as your primary residence at least 6 months out of the year

Taxes/Insurance/HOA: Must pay the property taxes, property insurance, and any HOA on time

Counseling: All partes getting a reverse mortgage or who are on title at the time of application must attend the required counseling session with a HUD-approved counseling agency prior to making application

BUYING A HOME WITH A REVERSE MORTGAGE

Is a Home Equity Conversion Mortgage (HECM) for Purchase (H4P) right for you?

Whether a first-time homebuyer or moving to a home that better fits their lifestyle, the Home Equity Conversion Mortgage (HECM) for purchase (H4P) loan helps older homebuyers fulfill their dreams of buying a home without having to worry about qualifying for or affording monthly mortgage payments (borrower must maintain the property and remain current on property taxes, homeowner’s insurance, and Homeowner Association (HOA) dues). Combining the HECM for Purchase loan proceeds with their down payment, older home buyers increase their purchasing power and can buy more home with less cash out of pocket! This means being able to afford higher priced homes, more upgrades, or homes in retirement communities with less money out of pocket than trying to purchase using a traditional mortgage. The HECM for Purchase has limited income and credit requirements, many consumer safeguards, is Insured by the Federal Housing Administration (FHA) and is regulated by the United States Department of Housing and Urban Development (HUD)! Imagine the financial independence that can be achieved by purchasing a home with an H4P. Best of all, if the untapped equity in the home increases over time, borrowers still own that equity - not the bank, since they retain full ownership of the property.

Eligible Properties

• Single family homes

• Town homes or Planned Unit Developments (PUDs)

• Two-to-four-unit homes: One unit must be owner occupied

• FHA approved Condominiums

Benefits Include

• No Monthly Mortgage Payments

Although you won’t have monthly mortgage payments for the life of the loan, you must maintain the home & remain current on your property taxes, homeowner’s insurance, and HOA dues.

• Eligibility Requirements

For homeowners 62 and older, primary residences, meet residual income requirements, maintain the property

• Closer to Family

Whether moving closer to children and grandchildren, or maintaining relationships with siblings or other relatives, many older homeowners are searching for the perfect location.

• Quality Housing

Quality many mean a better floor plan, such as a single story residence that eliminates stairs, or simply enjoying the benefits of a more high-end, energy efficient home.

• Low Maintenance Living

Many older homeowners are ready to leave behind yard work, exterior home repairs, shoveling snow and other time-consuming home maintenance, and move to a community that provides these services.

• More Purchase Power!

By combining the HECM for Purchase loan proceeds with their down payment, older home buyers increase their purchasing power and can buy more home with less cash out of pocket!