If you are over 62 and have an FHA reverse mortgage, you may be eligible to receive reverse mortgage assistance.
The California Housing Finance Agency (CalHFA) offers a mortgage assistance program called the Reverse Mortgage Assistance Pilot Program (RevMAP).
UPDATE: This program ended in November 2017.
To qualify for RevMAP:
- You must have a Federal Housing Adminstration (FHA) insured reverse mortgage, called an FHA Home Equity Conversion Mortgage (HECM). Read my article about Reverse Mortgage Costs and the FHA HECM.
- You live in a California single-family home that is subject to the HECM.
- You are at least 62 years old, and meet low-and-moderate income limits. In San Diego County, the income limit is $91,100.
- You have delinquent property expenses, such as property taxes, homeowners insurance, flood insurance, and/or HOA dues.
- You are in danger of losing your home to foreclosure, due to your inability to pay your property expenses.
- You have endured a personal hardship, such as a reduction of income, divorce, death in the family, or high medical bills. If you chose the HECM direct annuity payout option, and your annuity is exhausted, that qualifies as a reduction of income.
What Does RevMAP Provide?
RevMAP provides financial counseling, and funds to pay off delinquent property expenses. The RevMAP program pays the property expenses on your behalf. Some participants may also be eligible to have 12 months of future expenses paid on their behalf. The program provides up to $25,000 in assistance.
The amount of assistance will be in the form of a non-interest bearing loan, secured by a junior lien against the property. You will make no payments on this loan, and after two years, the loan is forgiven. If you sell or refinance the property prior to the loan forgiveness date, you may be required to pay back the assistance from the proceeds of the sale or refinance of your home.
Keep Your Home California has allocated $25 million toward this pilot program, and estimates that 1,400 homeowners are eligible for assistance.
How Do I Apply for Reverse Mortgage Assistance?
If you want to see if you qualify for this reverse mortgage pilot program, the first step is to contact your reverse mortgage servicer. They will be help you begin the application process. You can find their contact information on the Reverse Mortgage Assistance Pilot Program web page.
You can also call 888.954.KEEP (5337) to speak to a Keep Your Home California representative.
The Reverse Mortgage Assistance Pilot Program is ending in 2017. Applications must be received by 6 p.m. Thursday, November 30, 2017.
Keep Your Home California is a free, federally-funded mortgage assistance program. It is part of the California Housing Finance Agency (CalHFA). You can also read about CalHFA down payment assistance programs and CalHFA Keep Your Home California Mortgage Assistance Programs. More homeowner assistance is available through the Department of Housing and Urban Development (HUD)’s Mortgage Relief Programs.
