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●
What is a
first mortgage?
● What is
the Federal Housing Administration?
●
What is a
Reverse Mortgage?
What is a first mortgage?
A
first mortgage is exactly what it says it is -
the first loan on a certain piece of property.
No other lien has been taken out on this home.
When you first buy a house, the loan you
typically receive is a first mortgage.
What is the Federal Housing Administration?
The
Federal Housing Administration, generally known
as “FHA”, provides mortgage insurance on loans
made by FHA-approved lenders throughout the
United States and its territories. FHA insures
mortgages on single family, multifamily,
manufactured homes and hospitals. It is the
largest insurer of mortgages in the world;
insuring over 34 million properties since its
inception in 1934.
What is a Reverse Mortgage?
A
reverse mortgage is a loan that enables senior
homeowners, age 62 and older, to convert part of
their equity into a tax-free income - without
having to sell their home, give up title to it,
or make monthly mortgage payments. The loan only
becomes due when the last borrower(s)
permanently leaves the home.
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