HUD sponsored Reverse Mortgage

The HUD sponsored Reverse Mortgage, which is by far the most popular reverse mortgage loan, is commonly called the “Home Equity Conversion Mortgage”.   It was created by an act of Congress in 1989 to help seniors enjoy a better quality of life, while remaining in their homes for the rest of their lives. Essentially, the U.S. Government supports and regulates a loan that was created to enhance your life.  One of the most attractive features of this loan is that you do not have to pay it back for as long as you live in your home. Strict government regulation of this loan has made this program safe for seniors by eliminating lender abuses and unfair lending practices.  You retain all your ownership rights including title to the property, the ability to refinance, sell or leave the home to your heirs.  You can even make monthly payments if you wish to mitigate the erosion of your equity.

If you own a home and you need additional funds to supplement your income, to pay for healthcare, or to spend on any expenses or items that you desire, you should look into a reverse mortgage.  Seniors today are living longer healthier lives, and are using reverse mortgages to pay for an entire array of products and services to improve their lifestyle.

Read more about the most essential points to understanding of the government sponsored reverse mortgage.

What is the difference between an equity line and a reverse mortgage?

Both loans convert the equity in your home into available cash.  To obtain the equity line of credit there are income and credit score qualifications, and you are required to make monthly interest payments to the lender.  With a reverse mortgage, there are NO income or credit qualifications, NO monthly mortgage payments.  Repayment is deferred until you move from your home.  Also, with a reverse mortgage the lender cannot foreclose because of “missed payments”.  There are NO monthly payments to “miss”.

Read the entire question and answer section.