Real Estate Reverse Mortgages Part 3 of 4 - Additional Things of Importance to Know About the Reverse Mortgage

Here are some more important things that anyone considering a Reverse Mortgage should know: 

• FHA Reverse Mortgage loan limit is $625,500
• Eligible property types include single family residences, condos and town homes, one to four unit properties and newly constructed homes that can provide proof of completion and a Certificate of Occupancy.
• Participants are required to complete a HUD Counseling Session
• Participants must show a fully executed Sales/Purchase Contract
• Participants must provide documentation of cash to close (source of funds and current balance)
• FHA prohibits Discount Points, Interest Rate Buy Downs, Closing Cost assistance and Builder incentives
• Subordinate, bridge and personal loans are not allowed. Either are cash advances from credit cards or Seller Financing.
• Insurance that is required: twelve months of Hazard insurance premiums and twelve months of Flood insurance is required, both payable at closing.

Also See: Reverse Mortgage 1 - Reverse Mortgage 2 - Reverse Mortgage 3 - Reverse Mortgage 4