You must meet basic eligibility criteria to obtain an Idaho reverse mortgage, including:

• Age: 62 years or older
• Type of Residence: Primary residence
• Requirements: Maintain homeowners insurance, current property taxes, FHA minimum property standards
• Equity Requirements: Own home or have a low mortgage balance
• Federal debt: No delinquent federal debt

There are no credit or income requirements, and it does not impact social security benefits.

Like any mortgage, there are potential costs associated with an Idaho reverse mortgage. They can include but are not limited to the following.

• HECM Counseling Fee: The amount varies based on the counselor.
• Origination Fees: HUD caped reverse mortgage loan origination fees at $6,000.
• Closing Costs: The actual closing costs of your HECM reverse mortgage will vary and can include a survey, appraisal, taxes, title search, and more.
• Mortgage Insurance Premium: All reverse mortgage loans are required to carry mortgage insurance by the FHA. There’s an initial payment as part of closing and an annual fee. You can roll these costs into the life of the loan.
• Interest: You will be charged interest on the reverse mortgage. It can be fixed or variable, depending on your loan terms. The amount of interest you pay depends on the current market rates.

District Lending informs you of any potential costs prior to closing so there are no surprises. We are transparent about the cost of a HECM reverse mortgage.

A home equity loan will impact your heirs, so it’s crucial to consider that before you apply. Be aware of the following implications for your estate.

• Heirs will have 1-6 months to settle the reverse mortgage once it is due.
• The remaining equity in the home can pay the reverse mortgage.
• If there is not enough equity, the loan balance or 95 percent of the home’s appraised value can be paid, according to the Consumer Financial Protection Bureau.
• If your heirs sell the home, the loan balance will be covered first, and any remaining proceeds will be given to your heir.

You may want to consult with your heirs on their plans for the home after you are no longer living in it to understand if a reverse mortgage is right for you. If you have additional questions, District Lending can help you know what impact a reverse mortgage can have on your estate.

Reverse mortgages have specific repayment rules. If the homeowner sells or moves out of their home, the loan must be settled within 30 days. The bank can also require repayment if the property does not meet FHA property requirements, your property taxes are delinquent, or you don’t have homeowners insurance.

There are no penalties for paying a reverse mortgage off early.

Like any conventional loan, there are risks associated with an Idaho reverse mortgage loan. Your home can be subject to foreclosure if you no longer meet the loan terms. Additionally, you could end up owing more on the loan than the house is worth.

Consult with a District Lending expert to understand your risks. We can help mitigate them for Idaho homeowners looking for a home equity conversion mortgage.