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Reverse mortgages are becoming popular in America, specially now that a lot of seniors have seen their Nest Eggs reduced due to the recent Economic turmoil in Wall Street.

A reverse mortgage is a special type of home loan that lets you convert a portion of the equity in your home into cash.  The equity that built up over years of a home mortgage payments can be paid to you.  But unlike a traditional home equity loan or second mortgage, no repayment is required until the borrower(s) no longer use the home as their principal residence.  FHA's Home Equity Conversion Mortgage (HECM) provides these benefits.  You can also use a HECM to purchase a primary residence if you are able to use cash on hand to pay the difference between the HECM proceeds and the sales price plus closing costs for the property you are purchasing.

To be eligible for this loan, FHA requires that you be a homeowner 62 years of age or older, own your home outright, or have a low mortgage balance that can be paid off at closing with proceeds from the reverse loan, and you must live in the home. You are further required; to receive consumer information from an approved HECM counselor prior to obtaining the loan.

The HECM is a safe plan that can provide older Americans greater financial security.  Many Seniors use it to supplement social security,meet unexpected medical expenses, make home improvements and more.  Since your home is probably your largest single investment, it is smart to know more about reverse mortgages.

To receive more information call me at 813-451-0239 Laura Sanchez, PA G.R.I Realtor