FHA Reverse Mortgage for Senior Modular Home Owners
What is the FHA reverse mortgage? How will the senior modular home owners benefit from this? What are the requirements to successfully apply on this type of loan?
A 62 year old or older can be part of the FHA’s Home Equity Conversion Mortgage (HECM) program as long as he owns the modular home, paid the mortgage or the mortgage down payment, and is currently living in the said modular home. The HECM is also called FHA’s reverse mortgage program. The program enables you to withdraw some of the equity in your modular home.
You can also use a FHA reverse mortgage to purchase a primary residence if you are able to use cash on hand to pay the difference between the HECM proceeds and the sales price plus closing costs for the property you are purchasing.
How the FHA Reverse Mortgage Works
Before deciding whether FHA reverse mortgage is right for you, you need to consider a number of factors. First you need to meet with the FHA counselor who will discuss the program to you. You will be given the requirements for eligibility, financial implications and other alternatives when applying for the FHA reverse program. Counselors will also discuss provisions for the mortgage becoming due and payable. Upon the completion of FHA reverse mortgage counseling, you should be able to make an independent, informed decision of whether this product will meet your specific needs.
Once you have reached a decision and have met the borrower and property requirements, you can look for FHA- approved lender to apply for the reverse mortgage. You can search online for a FHA-approved lender or you can ask the FHA reverse mortgage counselor to provide you with a listing. The lender will to discuss other requirements of the HECM program, the loan approval process, and repayment terms.
Requirements for the FHA Reverse Mortgage
As a borrower you must be 62 years of age or older. You should own the property outright or paid-down a considerable amount and occupy the property as your principal residence. The FHA also requires you not to be delinquent on any federal debt. As a modular home owner applying for the FHA reverse mortgage, you must have financial resources to continue to make timely payment of ongoing property charges such as property taxes, insurance and homeowner association fees, etc.
Another set of requirements ensures that your property conforms with all the FHA property standards and flood requirements. Single family home or 2-4 unit home with one unit occupied by the borrower is required. Modular home should follow and meet the FHA requirements before, during and after construction.
And as for the financial requirements, the modular home owner applying for the FHA reverse mortgage must present a verified copy of his income, assets, monthly expenses and credit history. Timely payment for real estate taxes, flood and hazard insurance premiums will be verified. These factors help the FHA representative gauge the borrower’s capacity to pay later on.
In case you still have question about modular homes, you may contact Legendary Homes Inc in Jackson, Michigan. A representative will be happy to assist you. Meanwhile you can check our modular home price sheets by signing up to our blog
