The home equity conversion mortgage serves as a source for getting money mainly by seniors.It is a kind of reverse mortgage which permits seniors to get cash by using their equity built on their home.Residing in the same house the home owner can use the home equity for cash.This cash can be used for any purpose like medical expenses,home repairs etc.

There are three basic reverse mortgages.Home equity conversion is one among them.It can also be referred as federally insured reverse mortgage.Home equity conversion is supported by the federal housing administration(FHA).

As usual the home equity conversion mortgage service is provided by banks,credit unions,mortgage lenders,companies etc.These providers have to be get the approval from the FHA for offering home equity conversion service to the borrowers.

Requirements of a homeowner to qualify for home equity conversion mortgage

• The homeowner is sixty years old or above

• The home is the principal residence of the homeowner

• The homeowner has obtained reverse mortgage counseling

• The homeowner owns the house or a major amount of the mortgage is paid off

Requirements for a home to qualify for home equity conversion

• Home is the principal residence

• It has to be a single family residence

• Though the home can have one to four units the homeowner has to occupy atleast one unit

• The home can be a manufactured or a mobile home

• The home has to a FHA condominiums

The maximum amount to be obtained on a reverse mortgage is based on the age,home value and interest rate.At the same time the homeowner can get the amount as monthly payments or as a lump sum or as when he needs it.He need not repay the amount till he resides in the house.But still he remains the owner of the home.It is his responsibility to pay the property tax,house repairs,maintenance etc.