What is a Arizona Reverse Mortgage Loan (HECM Loan)?
Professionals in the Reverse Mortgage Loan business talk of HECM's-Home Equity Conversion Mortgages they are talking about the Reverse Mortgage.
This is understandable since that is the way we were taught and because most of the Arizona Reverse Mortgage Loan or loans are of the HECM variety.
The HECM Reverse Mortgage is insured by the Federal Housing Administration(FHA) and the FHA is part of the U.S. Department of Housing and Urban Development(HUD).
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.
A HECM Reverse Mortgage lender must follow federal guidelines on how much they can lend and how much they can charge for a Reverse Mortgage Loan.
In return, the Federal Housing Administration guarantees that the borrowers will meet all their reverse mortgage obligations.
Arizona Reverse Mortgage Loan, HECM Requirements and Eligibility!
The Arizona Reverse Mortgage Loan that are HECMs have generally the same requirements that private Arizona Reverse Mortgage Loans 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 a Arizona Reverse Mortgage Loan backed by the FHA.
More Arizona Reverse Mortgage Loan Information:
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?