Title Insurance

17 3. Can I apply for a HECM even if I did not buy my present house with FHA mortgage insurance? Yes. You may apply for a HECM regardless of whether or not you purchased your home with an FHA-insured mortgage. 4. What types of homes are eligible? To be eligible for the FHA HECM, your home must be a single family home or a 2-4 unit home with one unit occupied by the borrower. HUD-approved condominiums andmanufactured homes that meet FHA requirements are also eligible. 5. What are the differences between a reverse mortgage and a home equity loan? With a second mortgage, or a home equity line of credit, borrowers must make monthly payments on the principal and interest. A reverse mortgage is different, because it pays you – there are no monthly principal and interest payments. With a reverse mortgage, you are required to pay real estate taxes, utilities, and hazard and flood insurance premiums. 6. Will we have an estate that we can leave to heirs? When the home is sold or no longer used as a primary residence, the cash, interest, and other HECM finance charges must be repaid. All proceeds beyond the amount owed belong to your spouse or estate. This means any remaining equity can be transferred to heirs. No debt is passed along to the estate or heirs.