Ask Terry Questions Reverse Mortgage FHA?

Reverse Mortgage FHA?

By Terry Savage on June 22, 2015 | Housing / Real Estate

Do all reverse ,mortgages have to be HUD or FHA approved

Terry Says:  YES — any reverse mortgage you want to take out must be FHA approved.  The FHA insurance protects the lender (in case you live too long and there is not enough equity when the house is sold to cover the withdrawals you have made).  But in order for the lender to get this insurance, it must show that the borrower has received appropriate counseling, and all the rules have been followed.   And this procedure protects you, the borrower, by making sure you are dealing with an approved Reverse Mortgage lender.  Go to www.ReverseMortgage.org to read more.

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