The FHA provides loans to single occupied or multi lived in family homes and other approved purchases.The FHA does not itself issue the loans, but the insurance quote is an attractive deal for the lending firms. This is a condition of the loan.
The FHA reverse mortgage is design for people 62 years or older. It allows the borrower a way to convert the equity in their home into money, which is borrowed off a lender for an interest charge each money. FHA mortgage is also known as a HECM or Equity Home Conversion Mortgage and is paid back when the owner sells the house or dies.
The loan is taken with the younger person who has signed the loan agreement.
Owner is required to get further advice before taking out the mortgage
Any remaining equity in the house after loan is repaid belongs to the homeowner. In there isn’t enough to cover the loan once the home is sold the FHA insurance covered the difference in value. The cost of the FHA insurance is built into the repayments for the reverse mortgage and protects the lenders investment should the homeowner default on the loan repayments.