Reverse Mortgage

Learn how a reverse mortgage can help you tap into a portion of your home’s equity.

Are you interested in a Reverse Mortgage?

Are you a homeowner aged 62 or older who has either paid off the mortgage or paid a considerable amount of it and is currently living in the home? If yes, you may be eligible to participate in the Federal Housing Administration (FHA) Home Equity Conversion Mortgage (HECM) program. This reverse mortgage program allows you to withdraw a portion of your home’s equity. A HECM can be used to buy a primary residence. You need to have enough cash to pay the difference between the HECM proceeds and the sales price, including closing costs.

 

How the Program Works

There are many factors to consider before deciding whether a HECM is right for you. To aid in this process, you must meet with an HECM counselor to discuss program eligibility requirements, financial implications, and alternatives to obtaining an HECM and repaying the loan. Counselors will also discuss scenarios under which the mortgage would become due and payable. Upon completion of HECM counseling, you should be able to make an independent, informed decision about whether this product will meet your specific needs.

Before deciding whether a HECM is the right choice for you, there are several factors you need to consider. To help you in this process, you must meet with a HECM counselor. The counselor will discuss program eligibility requirements, financial implications, and alternatives to obtaining a HECM and repaying the loan. The counselor will also discuss scenarios under which the mortgage would become due and payable. After completing the HECM counseling, you can make an independent and informed decision about whether this product will meet your specific needs.

 

Program Eligibility

The following borrower, property, and financial eligibility requirements must be met:

blank
Borrower Requirements
  • Be 62 years of age or older.
  • Own the property outright or have paid down a considerable amount on your mortgage.
  • Occupy the property as your principal residence.
  • Not be delinquent on any federal debt.
  • Have the financial resources to continue making timely payments of ongoing property charges such as
  • property taxes, insurance, Homeowner Association fees, etc.
  • Participate in a consumer information session given by a HUD-approved HECM counselor.
  • Pay a $150 Counseling fee
Property Requirements

The following eligible property types must meet all FHA property standards and flood requirements:

  • Single-family home or 2–4-unit home with one unit occupied by the borrower.
  • HUD-approved condominium project.
  • Manufactured home that meets FHA requirements
Financial Requirements
  • Income, assets, monthly living expenses, and credit history will be verified.
  • Timely payment of real estate taxes, hazard, and flood insurance premiums will be verified.
How to Start the Process?
  1. Download and sign the Reverse Mortgage Counseling Agreement and submit it to Lavelle Dorriety at ldorriety@tallahasseelenders.org .
  2. Complete and submit the following Intake Form.
  3. Submit your payment for Reverse Mortgage Counseling by clicking here.

Once all of the above items are completed, TLC staff will contact you to schedule an appointment with the HECM counselor.

 

National Council on Aging’s (NCOA) Use Your Home to Stay at Home© is the official federally approved consumer booklet for older homeowners who are considering using reverse mortgage to stay in their home.

Click here to view a list of additional questions and answers about reverse mortgages