About Reverse Mortgages for Seniors (HECM)If you are a homeowner age 6. FHA's Home Equity Conversion Mortgage (HECM) program. Counselors will also discuss provisions for the mortgage becoming due and payable. You can search online for a HECM counselor or call (8.
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There are borrower and property eligibility requirements that must be met. If you meet the eligibility criteria, you can complete a reverse mortgage application by contacting a FHA- approved lender. Borrower Requirements. You must: Be 6. 2 years of age or older. Own the property outright or paid- down a considerable amount.
Occupy the property as your principal residence. Not be delinquent on any federal debt. Have financial resources to continue to make timely payment of ongoing property charges such as property taxes, insurance and Homeowner Association fees, etc. Participate in a consumer information session given by a HUD- approved HECM counselor. 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.
Government Insured Loans. The CalHFA FHA program is an FHA-insured loan featuring a CalHFA fixed interest rate first mortgage. Savings Bank of Danbury offers competitive CT mortgage rates by participating in various government programs.
For adjustable interest rate mortgages, you can select one of the following payment plans: Tenure - equal monthly payments as long as at least one borrower lives and continues to occupy the property as a principal residence. Term - equal monthly payments for a fixed period of months selected. Line of Credit - unscheduled payments or in installments, at times and in an amount of your choosing until the line of credit is exhausted. Modified Tenure - combination of line of credit and scheduled monthly payments for as long as you remain in the home. Modified Term - combination of line of credit plus monthly payments for a fixed period of months selected by the borrower. For fixed interest rate mortgages, you will receive the Single Disbursement Lump Sum payment plan.
Mortgage Amount Based On. The amount you may borrower will depend on: Age of the youngest borrower or eligible non- borrowing spouse Current interest rate; and. Lesser of appraised value or the HECM FHA mortgage limit of $6. If there is more than one borrower and no eligible non- borrowing spouse, the age of the youngest borrower is used to determine the amount you can borrow.
HECM Costs. You can pay for most of the costs of a HECM by financing them and having them paid from the proceeds of the loan. Financing the costs means that you do not have to pay for them out of your pocket. On the other hand, financing the costs reduces the net loan amount available to you.
The HECM loan includes several fees and charges, which includes: 1) mortgage insurance premiums (initial and annual) 2) third party charges 3) origination fee 4) interest and 5) servicing fees. The lender will discuss which fees and charges are mandatory.
You will be charged an initial mortgage insurance premium (MIP) at closing. You can finance the mortgage insurance premium (MIP) as part of your loan. Third Party Charges. Closing costs from third parties can include an appraisal, title search and insurance, surveys, inspections, recording fees, mortgage taxes, credit checks and other fees. Origination Fee. You will pay an origination fee to compensate the lender for processing your HECM loan.
A lender can charge the greater of $2,5. HECM origination fees are capped at $6,0. Servicing Fee. Lenders or their agents provide servicing throughout the life of the HECM. Servicing includes sending you account statements, disbursing loan proceeds and making certain that you keep up with loan requirements such as paying real estate taxes and hazard insurance premium. Lenders may charge a monthly servicing fee of no more than $3.
At loan closing, the lender sets aside the servicing fee and deducts the fee from your available funds. Each month the monthly servicing fee is added to your loan balance.
Lenders may also choose to include the servicing fee in the mortgage interest rate.