What is the minimum age requirement for a borrower to qualify for a reverse mortgage (HECM)?
Correct Answer
C) 62 years old
The minimum age requirement for a Home Equity Conversion Mortgage (HECM), which is the most common type of reverse mortgage insured by FHA, is 62 years old. This age requirement is established by HUD regulations and applies to all borrowers on the loan.
Why This Is the Correct Answer
The minimum age requirement for a Home Equity Conversion Mortgage (HECM), which is the most common type of reverse mortgage insured by FHA, is 62 years old. This age requirement is established by HUD regulations and applies to all borrowers on the loan.
More Mortgage Knowledge Questions
A borrower is comparing two loan offers: Loan A has no points and 4.5% interest rate, Loan B has 2 points and 4.0% interest rate. The loan amount is $400,000. How much will the borrower pay upfront for the points on Loan B?
A lender charges a 1% origination fee on all loans. For a borrower obtaining a $250,000 mortgage, what is the maximum origination fee that can be charged without violating the points and fees test under the ATR/QM rule for a first-lien mortgage?
Under what circumstances can a Qualified Mortgage include a prepayment penalty?
A borrower is considering paying discount points to reduce their interest rate. Each point costs 1% of the loan amount and reduces the rate by 0.25%. On a $300,000 loan, how much would the borrower pay for 2 discount points?
A borrower asks about the difference between discount points and origination fees. What is the most accurate explanation?
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A borrower provides an estimated property value of $450,000 on their application, but the property is currently under contract for $425,000. For TRID application purposes, which value should be used to determine if the application is complete?
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