MORTGAGE RATES FLORIDA

What is an FHA Reverse Mortgage?   There are many FHA mortgage programs and FHA home loan programs that will allow Florida homeowners to take advantage of the equity they've built up in their Florida home. One resource qualified FHA mortgage holders have at their disposal is the FHA Home Equity Conversion Mortgage (HECM) loan, also known as an FHA reverse mortgage. The FHA HECM is like other home equity loans that let you withdraw cash on the home value built up over the years. But the FHA reverse mortgage is very unique because Florida Reverse mortgage applicants don't make any payments on FHA reverse mortgage until they stop using the home as their principal residence. And, there are no mortgage payments due until you stop using the Florida home as a primary residence.

            Since a "principal residence" is defined as the place where the Florida homeowner does the majority of their living, using summer homes, time shares or RVs doesn't disqualify you from an FHA reverse mortgage loan. As long as you meet the requirements for an FHA reverse mortgage and use the property as your main address, you can take the cash value of your home's equity to use in a number of ways.

                                    QUALIFYING FOR FHA REVERSE MORTGAGE

            To qualify for an FHA reverse mortgage,

1. you must be at least 62 years old.
2. You must own your home, or have a low enough balance that the FHA reverse mortgage loan will pay off the outstanding amount when the HECM loan is approved.
3. Like other FHAmortgageFHAloan, the property must be either a single-family residence or a one to four unit property where the borrower occupies one of the units. Condos and manufactured homes qualify, but only if they meet FHA reverse mortgage requirements.
   
   FHA reverse mortgages are also different than conventional reverse mortgages because the borrower is required to get financial counseling from an approved HECM counselor. This is a condition of the FHA loan and is non-negotiable.
   
   NON-FHA HOMES
   
   It doesn't matter if you purchased your Florida home with a conventional loan or an FHA mortgage. As long as you meet FHA and HUD requirements for approval, you can use the  FHA reverse mortgage to claim the cash value equivalent for the equity in your Florida home.
   
   One of the conditions of the FHA reverse mortgage is that you aren't allowed to owe more than the Florida home is worth. The amount of your loan is determined by interest rates, your credit report, and by the appraised value of the Florida home. If you are approved for an FHA reverse mortgage or HECM, you must pay off any remaining balance at closing time on your new Florida home. As with any other FHA home loan, you are still responsible for paying property taxes, insurance, and related bills. Like other Florida FHA home products, your application must be made through an FHA mortgage lender.