An FHA Reverse Mortgage, also known as the Home Equity Conversion Mortgage or "HECM", offers senior citezens over the age of 62, a way to increase their cash flow.  Seniors retain ownership of their property and receive cash, or a monthly check representing a portion of the equity in the property.

The income received from the loan is tax free, with no repayment of the loan required as long as the borrowers reside in the home.  Repayment is only due when the property is sold, the owner dies, or vacates the property for 6 months, or an agreed upon date is reached.

The criteria for obtaining an FHA Reverse Mortgage are simple.  Existing home mortgages, deferred taxes or any federal debt must be paid in full, or paid out of the loan proceeds.  Borrower is at least 62 years of age with a "single family residence".  Condominiums and Planned Unit Developments (PUD's) may be eligible if they are in an FHA approved project.  Duplexes through four units are not eligible at this time.