About NewFED™ Reverse Mortgages
The HECM FHA insured reverse mortgage can be used by senior homeowners age 62 and older to convert the 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. The loan, commonly known as HECM, is funded by a lending institution such as a mortgage lender, bank, credit union or savings and loan association. To assist the homeowner in making an informed decision of whether this program meets their needs, they are required to receive consumer education and counseling by a HUD-approved HECM counselor.
HECM counselors will discuss program eligibility requirements, financial implications and alternatives to obtaining a HECM and provisions for the mortgage becoming due and payable. Upon the completion of HECM counseling, the homeowner should be able to make an independent, informed decision of whether this product will meet their needs. You can also use this handy Reverse Mortgage Calculator to help you see if you qualify.
Homeowners who meet the eligibility criteria can complete a reverse mortgage application by contacting a FHA-approved lending institution such as a bank, mortgage company, or savings and loan association. If you need assistance locating a FHA-approved lender, you can request a listing of FHA-approved lenders from the HECM counselor or use HUD's searchable listing.
Borrower Requirements:
| -Age 62 years of age or older | |
| -Own your property | |
| -Occupy your property as primary residence | |
| -Participation in a consumer information session given by an approved HECM counselor |
Mortgage Amount Based On:
| -Age of the youngest borrower | |
| -Current interest rate | |
| -Lesser of appraised value or the FHA insurance limit |
Financial Requirements:
| -No income or credit qualifications are required of the borrower | |
| -No repayment as long as the property is the primary residence | |
| -Closing costs may be financed in the mortgage |
Property Requirements:
| -Single family home or 1-4 unit home with one unit occupied by the borrower | |
| -HUD-approved condominiums | |
| -Manufactured homes and leased land | |
| -Meet FHA property standards and flood requirements |
NewFED™ Mortgage is licensed in Massachusetts (MA License No. MC3240), New Hampshire (NH License No. 9474-MB, Licensed by the New Hampshire Banking Dept.), Rhode Island (RI License No. 20041817LL, Rhode Island Licensed Lender), Florida (FL License No. CL0500151), Alaska and Colorado. NewFED Mortgage is an Equal Housing Lender. NewFED™ Mortgage is a member of the National Association of Mortgage Brokers, Massachusetts Mortgage Association, and the Better Business Bureau of Eastern Massachusetts, Maine and Vermont.
