Is FHA mortgage insurance a requirement when applying for a reverse mortgage?
My father is over 65 and a homeowner. Can he apply for a reverse mortgage if he didn’t buy his present house with FHA mortgage insurance?
American Advisors Group | Greg Shier
FHA insurance is required to get a reverse mortgage with AAG, but it doesn't matter whether or not the previous mortgage had FHA insurance or not because this is another mortgage altogether. With a reverse mortgage, FHA insurance will kick in in the event that there is not enough money from the sale of your house in order to repay the loan in full. In this situation, the difference will be paid via your FHA insurance. This is one of the reasons why reverse mortgages are non-recourse loans- or loans in which you will never owe more than the value of your house. I would recommend getting in touch with me or another AAG representative. They will be able to give you further information about reverse mortgages that is better tailored to your specific situation.
Disclaimer: The response above is not intended to be anything other than the educated opinion of the author. It should not be relied upon as financial advice. The website is merely an information sharing tool and is not to be substituted for the advice from a trusted and competent advisor. You should confer with such advisors before considering or entering into a reverse mortgage transaction.
Replied: 8/3/2010
Disclaimer: The response above is not intended to be anything other than the educated opinion of the author. It should not be relied upon as financial advice. The website is merely an information sharing tool and is not to be substituted for the advice from a trusted and competent advisor. You should confer with such advisors before considering or entering into a reverse mortgage transaction.
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