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Fannie Mae Home Keeper® Reverse Mortgage

A Home Keeper® reverse mortgage is Fannie Mae's conventional market alternative to the Home Equity Conversion Mortgage (HECM). It is a government-sponsored enterprise program and works like a HECM loan in many ways. However, a Home Keeper® reverse mortgage addresses a few needs that are not met by HECM loans, such as individuals with higher property values, condominium owners, and seniors wishing to use a reverse mortgage to purchase a new home.

The current (2007) lending limit with a Home Keeper® reverse mortgage is $41

Fannie Mae Home Keeper® Reverse Mortgage: Frequently Asked Questions

Q. What types of homes are eligible for a Fannie Mae Home Keeper® reverse mortgage?
A. Home types eligible for Home Keeper reverse mortgages include single-family homes, condominiums, and units in qualified planned unit developments.

Q. How do Home Keeper reverse mortgage loan limits compare to those of HECM loans?
A. Home Keeper reverse mortgages can be larger than HECMs because Fannie Mae's maximum lending limit - $417,000 for 2007 - is larger than the highest locally applied FHA mortgage limit.

Q. In what ways may I receive money from a Home Keeper reverse mortgage?
A. You may choose to receive money from a Home Keeper reverse mortgage in the same way you may receive funds from a HECM loan: as fixed monthly payments for life (i.e., for as long as the borrower occupies the home as his/her principal residence; as a line of credit with no growth; or a combination of monthly payments and line of credit).

Q. How are the interest rates computed for a Home Keeper reverse mortgage?
A. The HECM rates are based on the variable CD (Certificate of Deposit) interest rate plus margin and is adjusted monthly

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