Fannie Mae Reverse Mortgage Program | What is Reverse Mortgage? Read On For Answers Here

The Fannie Mae Reverse Mortgage Program

The Fannie Mae reverse mortgage program is called the Home Keepers loan. However, the Fannie Mae Foundation is not a lender. Like other reverse mortgage home products, the Fannie Mae Home Keepers loan must be obtained through an approved lender. While federal guidelines still regulate this type of reverse mortgage program, its similarities to other reverse mortgages end there.

The Fannie Mae Home Keepers reverse mortgage offers many benefits and features that are not available with the other main types of reverse mortgage programs. The first major difference that many seniors will see with the Fannie Mae reverse mortgage is that the money from the mortgage can be used to purchase another home. This gives a major advantage to seniors who are patrons of large families.

While the family home is always special, it is not always practical once the chicks leave the nest. Keeping a large home for only two people can make retirement much more work than it should be. Through the Fannie Mae reverse mortgage, retirees can purchase a smaller home that requires less maintenance, without the worry of making a mortgage or rent payment each month.

Another advantage to the Fannie Mae Home Keepers reverse mortgage program is that it allows for larger loan amounts for larger homes that acquire more equity. While other reverse mortgage programs cap out at around $200,000, the Fannie Mae reverse mortgage caps out at $450,000. This makes the Fannie Mae reverse mortgage much more applicable to retirees in large, more valuable homes.

Finally, the Fannie Mae reverse mortgage program allows retirees to obtain a reverse mortgage on properties not allowable by other loan programs. These properties include co-ops located in certain regions as well as condominiums. This opens up the possibilities of a reverse mortgage to more retirees than ever before.