With your Arizona Reverse Mortgage, what is, and are you eligible, for a Home Equity Conversion Mortgage (HECM)?
Most people think of Home Equity Conversion Mortgages when they are talking about reverse mortgages. This is understandable since most of the reverse mortgages issued in Arizona are of the HECM variety. HECM mortgages are insured by the Federal Housing Administration and the FHA is a part of the U.S. Department of Housing and Urban Development. HECM loans are the only reverse mortgages insured by the federal government so if are wanting a federally-insured loan, you have a choice of one. HECM lender have to follow federal guidelines on how much they can lend and how much they can charge. In return, the Federal Housing Administration guarantees that the borrowers will meet all their reverse mortgage obligations.
Arizona reverse mortgage HECM requirements and eligibility
Arizona reverse mortgages that are HECMs have generally the same requirements that private Arizona reverse mortgages have. You must use the property as your principal residence
and all the owners must be 62 years of age or older. If one owner is 65 and the other owner is 60, then the title would need to be transferred so the older owner would be the only owner of the property prior to getting an Arizona reverse mortgage. The Federal Housing Administration also has minimum requirements for the property but it can be arranged so that the proceeds of the Arizona reverse mortgage can be used to pay for any actions need to bring the property up to FHA standards. Your home has to be a single-family dwelling, though if you own a 2~4 unit place and live in one of the units, you are probably eligible. Most condominium owners are also eligible for an Arizona reverse mortgage backed by the FHA.
Arizona Reverse Mortgage | Is it right for you? | Arizona Reverse Mortgage Shopping | Truth in Lending Act | Two Big Ifs | Ways to Get Paid | Who and What? | Who Should Not Get a Arizona Reverse Mortgage?
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