Can I get a federally-insured reverse mortgage?
Answer:The loan for seniors offered by HUD /FHA is a federally-insured reverse mortgage. If you cover the requirements, and you most probably do, a HECM (home equity conversion mortgage) may be the right decision for you even despite the mortgage insurance premium you will have to pay for with a federally-insured reverse mortgage.
How to qualify for a federally-insured reverse mortgage?
The HECM requirements generally say that you have to own your house and live there permanently; you are 62 or older, and if you have a remaining mortgage on the house the balance needs to be small.
Your home has to be approved - one to four unit dwellings qualify automatically, as well as mobile homes and townhouses; some others have to be FHA-approved. Even if your current mortgage is not FHA insured, you are eligible to apply for an FHA-insured reverse mortgage.
Final piece of advice: Monitor your credit report and score regularly, to ensure there are no inaccuracies or unauthorized activity. Your credit report and score are the two major methods that creditors and lenders use to make a credit decision about you. Higher scores usually mean lower interest rates, which will save you money.
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