Federally insured reverse mortgage rules are getting a makeover.

Federally insured reverse mortgage rules are getting a makeover.

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 · Federally insured reverse mortgage rules are getting a makeover. If you are considering applying for a reverse mortgage, take note: The Federal Housing Authority has made changes to its Home Equity Conversion Mortgage program (HECM) effective April 1, 2013.

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A reverse mortgage is a federally insured loan for homeowners who are 62 years of age and older. On this page you’ll find lots of information about reverse mortgages and a link to our reverse mortgage calculator. How Much Money Can I Get from a Reverse Mortgage? The amount of money you can get.

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Reverse mortgages are increasing in popularity with seniors who have equity in their homes and want to supplement their income. The only reverse mortgage insured by the U.S. Federal Government is called a Home Equity Conversion Mortgage (HECM), and is only available through an FHA-approved lender.

Reverse Mortgages. A reverse mortgage is a home loan that you do not have to pay back for as long as you live in your home. You only repay the loan when you die, sell your home, or permanently move away. Homeowners who are at least 62 years old are eligible.

But the Federal Housing Administration, which insures home equity conversion mortgages (or HECMs), as reverse mortgages are formally known, has made rule changes that have reduced the cost of.

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They are federally. to foreclose. The rules should be changed so there is an evaluation of the ongoing ability to pay taxes and insurance, or money should be kept in reserve." Borrowers should also.

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