Reverse Mortgage Tips
Reverse mortgages are becoming popular in America. Seniors 62 and above who may be interested in a reverse mortgage might include those with monthly payments they cannot afford or having little income, seniors needing funds for long-term care insurance or those in foreclosure. Here are a few suggestions and links to the official HUD website to help you with the process.
Select a HUD-approved FHA lender. An FHA loan would be insured in case you should outlive your loan allowing the balance to be forgiven. Visit www.hud.gov/ll/code/llplcrit.html for the approved lender list.
Counseling is required before the loan can be processed and the certificate will accompany the loan documents. Call 1-800-569-4287 for the name and location of a HUD-approved housing counseling agency near you or visit www.hud.gov/offices/hsg/sfh/hecm/hecmlist.cfm.
An FHA loan fee of 2% is required and non-negotiable. This fee is for the loan insurance.
An additional 2% lenders fee may be negotiable
Title, escrow and appraisal fees vary. The total amount of fees may vary from 00 to ,000 and are included into the loan amount.
To find out how the HUD's Reverse Mortgage Program works, please visit the HUD website at www.hud.gov/offices/hsg/sfh/hecm/hecmabou.cfm#how .
Posted 1/10/08
