Reverse Mortgage Comparison Chart

A chart of some of the most common questions we get about different types of Reverse Mortgages (RM's)
Question Monthly FHA Annual FHA Fannie Mae Cash Account
Must I (We) own the house? yes yes yes yes
Can I have an RM if I have a trust or life use provision? yes yes yes yes
Does the title stay in my name ? yes yes yes yes
Can my existing mortgage be paid off with the reverse mortgage? yes yes yes yes
Are there income requirements? no no no no
Do I ever have to make monthly payments? no no no no
Can proceeds be provided as a line of credit? yes yes yes yes
Can I get monthly payments for the rest of my life? yes yes yes yes
Do I have to worry if I have problems with my credit? no no no no
Can I get monthly payments and a line of credit? yes yes yes yes
Can I change how I access my funds? any time any time any time Call Us
Can proceeds be given to me as a lump sum? yes yes yes yes
What are the 'out of pocket' expenses that I may have to pay? Appraisal fees Appraisal fees Appraisal fees Appraisal fees
Can I incorporate my closing costs and FHA insurance into my loan? yes yes yes yes for closing costs - there is no FHA ins.
What is the minimum age to take out a RM? 62 62 62 62
Who is responsible for the taxes and the property insurance? The homeowner The homeowner The homeowner The homeowner
Can I get a RM on my 1-4 family home? yes yes no yes
Can I get an RM on my condominium? must meet FHA guidelines must meet FHA guidelines yes yes
Can I get an RM on my PUD? must meet FHA guidelines must meet FHA guidelines must meet Fannie Mae guidelines yes
Can I get an RM on my CO-OP? no no no no
Do I have to go through a one time counseling session? yes yes yes yes
Is this RM tax free? yes* yes* yes* yes*
Is this program insured by the U.S. government? yes yes no no
Will this affect my Medicare and Social Security? no* no* no* no*
Is there an application fee? no no no $500 but this incl. the appraisal fee.
Is an appraisal required? yes yes yes yes
How often is the rate set? Monthly Annually Monthly Semi-annually
What is the rate set against? (this is the index) 1 yr T Bill 1 yr T Bill 1 month avg CD LIBOR
What is the margin? 1.5% over the index 3.1% over the index 3.4% over the index 3.5% over the index
Will I get a full cost breakdown on my
RM - (A GFE)
yes yes yes yes
* You should always consult a trusted advisor on these issues

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