Home Star Funding

Back to top What is a reverse mortgage?

A reverse mortgage is a special type of home loan that lets a homeowner convert a portion of the equity in his or her home into cash. Payments are paid to you. But unlike a traditional home equity loan or second mortgage, no repayment is required until the borrower(s) no longer use the home as their principal residence. HUD's reverse mortgage provides these benefits, and it is federally-insured as well.

Back to top How Can I qualify for a HUD reverse mortgage with poor credit and can not prove income?

To be eligible for a HUD reverse mortgage, HUD's Federal Housing Administration (FHA) requires NO PROOF OF INCOME NOR CREDIT CHECK and that the borrower is a homeowner and 62 years of age or older.

Back to top Can I apply if I didn't buy my present house with FHA mortgage insurance?

Yes. It doesn't matter if you didn't buy it with an FHA-insured mortgage. Your new HUD reverse mortgage will be a new FHA-insured mortgage loan.

Back to top What types of homes are eligible?

Your home must be a single family dwelling or a two-to-four unit property that you own and occupy. Townhouses, detached homes, units in condominiums and some manufactured homes are eligible.

Back to top Can the lender take my home away if I outlive the loan?

NO! NEVER! You do not need to repay the loan as long as you or one of the borrowers continues to live in the house and keeps the taxes and insurance current. Also you can never owe more than your home's value.

Back to top How much money can I get from my home?

The amount you can borrow depends on your age, the current interest rate, and the appraised value of your home or FHA's mortgage limits for your area, whichever is less. Generally, the more valuable your home is, the older you are, and the more you can borrow.

Back to top How do I receive my payments?

You have six options:

Lump Sum - A one time lump sum payment.
Tenure - equal monthly payments as long as at least one borrower lives and continues to occupy the property as a principal residence.
Term - equal monthly payments for a fixed period of months selected.
Line of Credit - unscheduled payments or in installments, at times and in amounts of borrower's choosing until the line of credit is exhausted.
Modified Tenure - combination of line of credit with monthly payments for as long as the borrower remains in the home.
Modified Term - combination of line of credit with monthly payments for a fixed period of months selected by the borrower.

Back to top Do I pay taxes on proceeds and will it affect my Social Security Benefits?

No the amount you receive is NOT taxed, NOT considered income and does NOT affect Social Security or Medicare.