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Reverse Mortgages

March 7, 2012

FHA mortgages fall under the Home Equity Conversion Mortgage (HECM) program and were among the first reverse mortgages to be offered. A reverse mortgage is often an attractive product for a senior citizen on a limited or fixed income because it allows him/her to use the equity acquired over time to pay living and other expenses without having to sell the home.

In addition to being 62 years of age or older, there are other requirements a borrower must meet in order to be eligible for a HECM loan. The property must be owned by the borrower as his/her primary residence and must remain so, or the mortgage will become due and require repayment. Eligible properties are those that are one to four units and can be attached, detached, townhomes, some types of modular/manufactured homes, and FHA-approved condominiums.

HECM loans do not contain any income, asset, or appraised value limitations. HECMs are, however, rising-debt loans. With rising-debt loans, the interest is added to the principal each month. Borrowers are still required to maintain payments for servicing and origination fees, mortgage insurance premiums, and all property taxes. Borrowers do have the option of financing mortgage insurance premiums in order to ensure they will never owe more than the value of the home (in total debt).

 

FOR A FAST PRE-APPROVAL:
http://pmcmortgageloans.com/mortgage_application.php

First, complete a loan application on our website
-Go to http://www.pmcmortgageloans.com
-Click on Apply Now at the top
-Scroll to the middle of the page and Click on 3. Full Application
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