Do you Qualify for FHA's HECM Reverse Mortgage?

Senior citizens who own equity in their homes are the primary recipients of the Federal Housing Administration's Home Equity Conversion Mortgages (the FHA's HECMs), popularly known as a reverse mortgage. The HECM program allows elderly homeowners to exchange a part of their home equity into cash and use it to supplement their financial needs. However, there are other qualifications that the applicant must meet to avail the program.

Borrower Eligibility Requirements

If you are a homeowner who wishes to apply for the reverse mortgage program, there are certain qualifications that you need to meet for the approval of your application. The following list of requisites must be met:

  • your age is 62 years or older;
  • you do not have a bad record on any federal loan/debt;
  • you use the home as your primary residence;
  • you fully own the property or have paid most of its total mortgage cost;
  • you attend the consumer information assembly conducted by an FHA-accredited HECM counselor.

Property Qualifications

Not all types of homes are qualified for the reverse mortgage program. To see whether the property you own is eligible for an HECM, check these following requirements specified by the FHA:

  • The property must be a single-family residence or a 1- to 4-unit home.
  • A condominium property must be HUD-approved.
  • Mobile or manufactured homes must meet the requirements set by the FHA.