• Most popular (over 90%) of reverse loans
• NEW! National lending limit of $625,500
• Insured: FHA mortgage insurance premium charged (MIP)
• Both variable and fixed interest rates available
• Funds available as lump sum, monthly income, line of credit
• Unused balance on line of credit grows annually

• NEW! FHA program using Reverse Mortgage for home purchases
• Eligibility follows current HECM program guidelines
• Home value used is lesser of sale price, appraised value, or HUD lending limit
• Borrower must occupy property within 60 days from closing date
• Call for more information

• Good choice for higher-valued homes
• Can be used for home purchases
• Some versions have very low closing costs
• Usually higher interest rates (often based on LIBOR)
• Useful program for short-term borrowers
• Call for availability

Seniors who wish to refinance an existing HECM will benefit from savings on the upfront mortgage insurance fee charged by FHA. The 2% MIP is only charged on the difference between the original loan’s home value and today’s appraised value.

Mandatory counseling waived if they have received counseling within the last five years