05/20/2010 Getting an FHA Reverse Mortgage, known as a Home Equity Conversion Mortgage, is easy. Three basic steps are all it takes.
Step 1 - Choose a lender Only FHA-approved lenders can offer FHA reverse mortgages. Therefore, the first step is locating a lender that is authorized by the FHA to offer this type of mortgage product. Once you start looking, you'll find several. If you want to save money, take time shop around until you find the one that offers the lowest mortgage rates and closing costs.
Step 2 - Complete an application Once you choose a lender, the next thing you have to do is complete an application. Don't worry; you won't encounter any income, credit, or employment questions. But you will be asked about your age and your home in order to determine reverse mortgage eligibility.
Step 3 - Attend a counseling session Attending a mandatory counseling session is a required part of the FHA home loan reversal approval process. You must schedule a meeting with a certified counselor which you can do by contacting the Department of Housing and Urban Development (HUD). On the scheduled date an FHA-certified counselor will meet with you to help you determine whether a reverse mortgage is right for your needs and situation. At this meeting the counselor will also discuss FHA reverse mortgage details including borrowing and property requirements, how much money you can borrow, loan costs, repayment terms, and payment plans.
There you have it - three simple steps to an FHA reverse mortgage. It doesn't get easier than that!
