The HUD/FHA rules are easy to follow and offer guarantees to the home-owner.
- HUD Program/ FHA Insured, an advance of equity.
- The age of the home-owners must be 62 or older.
- HUD/FHA offers home-owners a percentage of equity, based on age of younger borrower, appraised value of home, and current interest rate. (Note: the older the home-owner, the more received.
- The property must be the homestead and permanent residence.
- The equity funds you receive are NON-TAXABLE.
- Home-owner makes no monthly mortgage payments on a Reverse Mortgage, until the home is sold, move away permanently, or all borrowers pass away.
- Reverse Mortgage can pay off an existing mortgage.