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Questions and Answers
In Section 203(k), all loan proceeds used for the upgrade work must be put into an escrow account and released at once.
In Section 203(k), all loan proceeds used for the upgrade work must be put into an escrow account and released at once.
False
According to Section 255, the homeowner must be at least 52 years old to qualify for a home equity conversion mortgage.
According to Section 255, the homeowner must be at least 52 years old to qualify for a home equity conversion mortgage.
False
For an FHA HECM, repayment is required even if the property is still the owner's principal residence.
For an FHA HECM, repayment is required even if the property is still the owner's principal residence.
False
FHA loans are primarily used to purchase luxury properties with temporary improvements.
FHA loans are primarily used to purchase luxury properties with temporary improvements.
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Properties with up to four units are eligible for FHA loans.
Properties with up to four units are eligible for FHA loans.
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The loan amount for an FHA HECM depends on the borrower's annual income.
The loan amount for an FHA HECM depends on the borrower's annual income.
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The Federal Housing Administration will cover any shortfall in the sale proceeds when a property with an FHA HECM is sold.
The Federal Housing Administration will cover any shortfall in the sale proceeds when a property with an FHA HECM is sold.
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Private mortgage insurance is generally required for all FHA loans.
Private mortgage insurance is generally required for all FHA loans.
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Home equity conversion mortgages allow older homeowners to convert their equity into a line of credit only, not a source of monthly income.
Home equity conversion mortgages allow older homeowners to convert their equity into a line of credit only, not a source of monthly income.
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In Section 203(k), rehabilitation work must meet HUD standards and can include both temporary and luxury improvements.
In Section 203(k), rehabilitation work must meet HUD standards and can include both temporary and luxury improvements.
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