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Skip Navigation Links : Loan Programs : FHA Loans : Reverse Equity (255)
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FHA Reverse Equity Program
Section 255

Section 255 also known as the Home Equity Conversion (reverse) Mortgages (HECM) provides FHA insurance on reverse mortgages which can be used by senior homeowners age 62 and older to convert equity in their home into monthly streams of income and/or a line of credit to be repaid when they no longer occupy the home.

Section 255 features:

  • Borrower must be age 62 years of age or older, legal owner of the property and occupy the property as primacy residence.
  • Mortgage amount is based on the age of the youngest borrower, current interest rate and the lesser of appraised value or the FHA insured loan limit.
  • There are no credit or income requirements for the FHA reverse mortgage.
  • There are no limits on the value of homes qualifying for a HUD reverse mortgage.
  • To assist the homeowner in making an informed decision on whether this program meets their needs, all borrowers are required to receive consumer education and counseling by a HUD-approved HECM counselor.
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