What is an FHA Insured Reverse Mortgage?

Reverse Mortgage FAQ>>> What is an FHA Insured Reverse Mortgage?

The U.S. Department of Housing and Urban Development (HUD) created one of the first reverse mortgage programs, a safe federally-insured private loan.

Their term for the home equity conversion mortgage (HECM).

With the rising popularity of reverse mortgages has ,unfortunately, also brought out unscrupulous lenders and brokers who try to take advantage of seniors by charging high associated loan costs. As a way to protect seniors, FHA insists that any reverse mortgage or HECM that the Agency requires the seniors to have a mandatory counseling session with an FHA or HUD housing reverse mortgage professional. The FHA wants seniors to be well informed and believes it is critical that applicants understand and are educated in the pros and cons of this mortgage.