A federally insured reverse mortgage comes with the benefit that you, the borrower, will receive loan payments as agreed upon by the terms of your loan, and will never owe more than your home is worth.
These benefits are guaranteed by the Federal Housing Administration through its Home Equity Conversion Mortgage program, which includes most reverse mortgages out there. The only reverse mortgages that do not include this benefit are Jumbo Reverse mortgages which are offered by private banks which are separate entities and are not governed by the Federal Housing Authority. These reverse mortgages are not very common and if the reverse mortgage you are considering is an FHA loan you will have all of the benefits being discussed in this blog.
In order to receive these guaranteed protections, borrowers pay for it through the reverse mortgage insurance premiums. The first is a one-time insurance payment that is made up front, and the other is an annual insurance premium that is paid to the FHA.
Want more details on how a Reverse Mortgage could impact your retirement? Call us toll free at 805-738-8326.
Author: Rick Underwood
Date: 8/27/2019
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