Most of my posts usually revolve around one type of FHA loans – Section 203b Insured Mortgage. So, I thought I would start a series of posts about the other types of loans offered by the FHA. (Translation: Slow news week).

This week: Section 255 Home Equity Conversion Mortgage (HECM) – Reverse Mortgage.

Reverse mortgages allow individuals to borrow against their home equity in the form of monthly payments or a line of credit. Just like the name suggests, instead of paying the mortgage company every month, they pay you.

One very important thing to know about a reverse mortgage is that it’s only for home owners ages 62 and up. Some other requirments are that you must own the property, that it is your primary residence, and that you will have to attend a consumer information session.

So why is an FHA reverse mortgage so special? Because you don’t have to pay it back as long as you maintain the home as your primary residence. With the reverse mortgage industry’s relative newness, an FHA reverse mortgage is one you know you can trust. (See: Subprime Bust.)

Learn more at the HUD Reverse Mortgage page.

This entry was posted on Monday, June 18th, 2007 at 3:07 pm and is filed under Uncategorized. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.