Part II: Additional Things Of Importance To Know About The Reverse Mortgage
Monday, March 30, 2009
Here are some more important things that anyone considering a Reverse Mortgage should know:
- FHA Reverse Mortgage loan limit is $625,500
- Eligible property types include single family residences, condos and town homes, one to four unit properties and newly constructed homes that can provide proof of completion and a Certificate of Occupancy.
- Participants are required to complete a HUD Counseling Session
- Participants must show a fully executed Sales/Purchase Contract
- Participants must provide documentation of cash to close (source of funds and current balance)
- FHA prohibits Discount Points, Interest Rate Buy Downs, Closing Cost assistance and Builder incentives
- Subordinate, bridge and personal loans are not allowed. Either are cash advances from credit cards or Seller Financing.
- Insurance that is required: twelve months of Hazard insurance premiums and twelve months of Flood insurance is required, both payable at closing.
