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Articles in Category: Home Equity Conversion Mortgage

FHA loans

July 9, 2024

Home Equity Loans: The FHA Reverse Mortgage

By Joe Wallace

The FHA Home Equity Conversion Mortgage (HECM) loan is a home equity loan option for qualifying borrowers 62 or older. There are no monthly payments on an FHA HECM. The borrower can get cash back on the transaction, and the loan is typically due in full when the borrower dies or sells the home. Qualifying HECM borrowers are, once their loan application is approved, able to withdraw “a portion of your home’s equity to use for home maintenance, repairs, or general living expenses,” according to the FHA and HUD official site.  You can also apply for an FHA reverse mortgage to purchase a primary residence, but you must use your own cash to make up any difference between FHA HECM funds, the sale price, and any associated closing costs.  HUD.gov | more...

 

April 18, 2012

Prison Time For Reverse Mortgage Scammers

By Joe Wallace

From time to time, we report news of housing scams that can affect FHA borrowers. It’s a way of raising the awareness that such scams exist, a reminder of the necessity of being careful in the loan process. The latest news from the FHA and HUD includes a report of three loan officers and a title agent who have been barred from doing business with the FHA/HUD following their convictions on fraud charges. The action was announced in a press release at HUD.gov, HUDNo.12-069: “The U.S. Department of Housing and Urban Development (HUD) today announced the indefinite debarment of three South Florida mortgage loan officers and a Pittsburgh title agent following their criminal convictions on charges they defrauded elderly borrowers, mortgage lenders and the Federal Housing Administration (FHA). Marcos Echevarria, | more...

 

August 23, 2010

FHA Requirements for Home Equity Conversion Mortgages

By Bruce Reichstein

Home Equity Conversion Mortgages, or HECM for short, are designed to help qualified borrowers take out an FHA guaranteed loan against the equity built up in their property. They are intended for a specific segment of homeowner; FHA requirements for HECM loans include an age-specific restriction, plus qualifying ownership status, and restrictions on the type of property that can be used for a Home Equity Conversion Mortgage.