Mortgage Best Rate

The weather is just beginning to break after a long period of winter; snow, cold temperatures and harsh conditions have made it a long season. As spring begins to appear, the repairs seem to pop up: a new roof, heater upgrades and water damage all need to be addressed before the next season rolls in for a long stay. The question is always the same: Where will I get the money to do all of these repairs? A senior on a fixed income shares the same question as anybody, but often cannot expect to find additional sources of revenue to add to a new project.

Because seniors often own their homes or have very little debt on their home, an option exists for them that may make it possible to perform many of the needed upgrades on their homes. Enter the HUD reverse mortgage program or home equity conversion mortgage (HECM) for seniors. HECM is the Federal Housing Authority’s reverse mortgage program that enables seniors to withdraw some of the equity from their home—but not the entire value of the home.
 
The FHA requires that you be 62 years or older to qualify for a HECM. Because of so much misinformation, the FHA requires that seniors talk with one of the many approved reverse mortgage counselors.

HECM is designed for seniors that own their home—their principal residence—or have very little debt remaining on their home loan. After a loan is executed by an approved reverse mortgage lender, no repayment is made for as long as the senior remains in their principal residence. Another advantage is that no income or credit verification is required, as the only important requirement is that the home is owned outright.

States and lenders vary on reverse mortgage rates, so it is important to shop around and get several reverse mortgage quotes. Also, verify that the lender is approved by the FHA or HUD before entering into any contract or agreement.

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