About: Single Purpose Reverse Mortgages: Provided by state and local governmental agencies and non-profits.
Federally Insured Reverse Mortgages: Reverse Mortgages HUD (Home Equity Conversion Mortgage or HECM) is a special type of mortgage allowing the borrower to withdraw equity from their home and convert it into cash. HECM borrowers do not have to repay their HECM loan until the borrowers no longer use the home as their principal residence or if they fail to meet the obligations of the mortgage. Additionally, HECM’s can be used to purchase primary residences if the borrower is able to use cash in hand to pay the difference in the HECM amount and sales price (in addition to closing fees).
Proprietary Reverse Mortgages: Privately offered loans backed up by individual companies.
Recent Updates: On April 26th, an amendment was made to the FHA’s Home Equity Conversation Mortgage program. Tomorrow, a conference call will be made in regards to the changes. The primary intent of the amendment is to clarify the requirements of the due and payable status in the instance of a Non-Borrowing Spouse following the death of the last mortgagor. More Details