FHA reverse mortgage are designed for you to pay off the loan's principal (including accrued interest) once the house is sold or it stops being your primary residence.

FHA Articles

News, updates, and explanations to keep you informed.

FHA Reverse Mortgage Payments and Fees

FHA reverse mortgages are designed to help borrowers age 62 and older borrow against the equity in their homes. FHA Reverse mortgages, also called FHA HECM loans, are based on a variety of factors. Your application will be considered in light of the information in your credit report, plus the appraised value of your home, and current interest rates. The advantage of an FHA reverse mortgage includes no monthly FHA mortgage payments as long as the property is used as the primary residence.

WHEN DO I MAKE MY FHA REVERSE MORTGAGE PAYMENTS?

FHA reverse mortgage are designed for you to pay off the loan's principal (including accrued interest) once the house is sold or it stops being your primary residence. Once the home is sold and the FHA HECM loan is paid off, any remaining equity is yours. If your heirs are selling the home, any remaining equity is given to them once the loan is paid off.

A major benefit of FHA reverse mortgages or FHA HECM loans? Borrowers can never owe more than the appraised value of the home, even if the housing market takes a turn for the worse. This benefit is possible through FHA mortgage insurance. If your home sells for an amount less than what is owed to the bank, the FHA pays the rest. You can't go into debt as a result of an FHA reverse mortgage home loan. Once the home is sold and the loan is paid (up to the appraised value of the home,) the borrower's obligation is over.

Will I Need To Pay For Mortgage Insurance On My FHA Reverse Mortgage?

Yes. You will pay a mortgage insurance premium. Other FHA reverse mortgage or FHA HECM loan fees include servicing charges, origination fees and typical closing costs.

HOW MUCH ARE THE FEES?

While your actual costs depend on a variety of factors, FHA reverse mortgage origination fees are limited to no more than $6000. These origination fees depend on the value of your home. How much could you pay? Up to $2500, if the value of your home is less than $125,000. Is your home worth more than that amount? If so, your fees will total 2% of the first $200,000 in value plus 1% of the value above $200,000.

OFFSETTING FHA REVERSE MORTGAGE FEES

If you wish to finance FHA reverse mortgage fees and build them into the cost of the HECM loan, you may do so. It's important to know that when financing these costs you will get a reduced final total of the loan money coming to you. If you were approved for a loan of one hundred thousand dollars, for example, the amount coming to you would be one hundred thousand minus the closing costs and other fees. If you have the means to pay your FHA HECM fees up front and wish to do so, make arrangements with your loan officer--you will get the full amount you're entitled to receive.

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:: The FHA Reverse Mortgage

:: FHA Reverse Mortgage Payments and Fees

:: Repaying an FHA Reverse Mortgage

:: FHA Reverse Mortgages: Getting Your Loan and Paying It Back

:: 2009 Tax Credit and FHA Loan Down Payments Update

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:: Down Payment Assistance Programs--Are They Making a Comeback?

:: The 2009 First-Time Homebuyer's Tax Credit

:: $8,000 Tax Credit for First-Time FHA Loan Homebuyers

:: Obama Mortgages After Five Years of Loan Modification

:: The Obama Mortgage: What Happens When I am Approved for Loan Modification?

:: All About the Obama Mortgage Questionnaire

:: Mortgage Insurance and the Obama Mortgage

:: Does the Obama Mortgage Lower My Payments?

:: Why You Don’t Need to Pay for Help with an Obama Mortgage

:: Changes to FHA Cash-Out Refinancing

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:: Things to Know About FHA Refinancing

:: Reasons to Consider an FHA Home Loan

:: Mortgage Insurance Requirements for FHA Loans

:: What is an FHA Streamline Loan?

:: FHA Streamline Loans, 'Cash Back' and Closing Costs

:: FHA Streamline Loan Requirements

:: Dos and Don’ts for FHA Streamline Loans

:: Terms for FHA Refinancing

:: FHA Loans Explained

:: FHA Loans vs. Conventional Loans: The Difference

:: Ten Myths About FHA Loans

:: FHA Refinance Questions You'll Need to Answer

:: Your Credit and FHA Refinance Loans

:: FHA Loans and Your Rights as a Borrower

:: Rehab a Home with an FHA 203(k) Fixer Upper Loan

:: What are the FHA Loan Limits?

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