What is this program for additional income?
This is a Home Equity Conversion Mortgage or "Reverse Mortgage" for retired homeowners. It is a special kind of loan for seniors. It is a safe and easy way to turn home equity into cash. You don't have to make any monthly payments. In fact, you never have to repay the loan for as ong as you live in your house.

Who offers this program?
This program is insured by the U.S. Department of Housing and Urban Development (HUD). It is offered in Utah and Idaho by FSI Mortgage, LC.

Are reverse mortgages really a good deal?
They are now. But years ago, reverse mortgages from private lenders often were not good because of high fees, costs and interest. However, now that HUD insures these loans, reverse mortgages are closely regulated and scrutinized. You may rest assured that if you have an FHA insured mortgage, your costs and fees are within the limits and guidelines set by HUD.

How do I qualify for a reverse mortgage?
Requirements for eligibility are:

How good does my credit have to be?
There are no credit requirements and no income requirements to qualify for a reverse mortgage

How do I receive the money?
You can choose whether you will receive a lump sum, a line of credit that you can draw on when needed, an automatic monthly income, or a combination of these.

What if I still have a regular mortgage on my house?
A reverse mortgage will pay off your existing mortgage and then give you any additional money available. This can be a great benefit because it eliminates your current mortgage payment.

Will I still own my home?
Yes, you will own it and you will still remain on the title as the owner.

Will my house still go to my heirs?
Your heirs will still inherit your house according to the terms of your will or trust. However, the house will be subject to a mortgage for the amount of money that was advanced to you plus any costs or interest accrued. Your heirs can also inherit the remainder of your invested money if you took a lump sum and invested it so that you could live off the interest/earnings.

What are the interest charges and fees?
Interest rates can be fixed or variable depending on the option chosen. And, since you don't make payments, it has no impact on you unless you move and pay off the loan. All closing costs, interest and fees are added to the mortgage amount so that you don't have to pay cash for them up front.

What if the mortgage grows faster than the value of the house? Could my heirs end up owing more than the house is worth?
FHA guarantees that you or your heirs will never owe more than the house is worth.

How much money can I qualify for?
The amount is determined by a formula that includes your age, the home's value, your spouse's age, and FHA's maximum claim amount. For a rough estimate see the chart.

How can I find out exactly how much I can get?
Contact FSI Mortgage at (801) 281-2303 for a personal meeting and an exact estimate.

Can FHA ever make me repay the money?
Not as long as you live in your home. But if you move out or sell the home, you must repay the loan just like any other mortgage. After you and your spouse die, your heirs can either sell the home or they can refinance it to pay off HUD.

Is the money I get taxable?
No. It is actually a loan, so there is no income tax.

Are there any out-of-pocket costs up front ?
No. The costs are built in so that you don't have to pay them in cash.

Is a Reverse Mortgage safe?
Yes it is very safe. FHA guarantees that you will get your money and that you can stay in your home as long as you like. They also guarantee that you will never owe more than your home is worth.

How can I learn more?
One of the best ways is to call for a free booklet about reverse mortgages or you can attend a seminar in your area. The seminars are sponsored by FSI Mortgage and taught by leading area experts on reverse mortgages. Call 801-281-2303 for a seminar schedule.

Who can I talk to if I have more questions or to apply to get started?
The HUD-insured mortgage program is offered in Utah and Idaho through FSI Mortgage. You can meet and talk to one of their specialists at their office, or in your home. And when you are ready they will assist you in completing your application. Call the phone number on this page to schedule an appointment today!