Reverse Mortgage – How Dream Retirements Come True
The government-insured Reverse Mortgage program allows senior homeowners, at least 62 years old, to utilize the equity in their homes to receive tax-free advances to spend freely.
Reverse Mortgage Loan Questions & Answers
Today, a Reverse Mortgage Loan is becoming an increasingly popular way for seniors to supplement their retirement, offering a secure option for accessing cash based on the equity in their homes.
Here are answers to common questions you may have about Reverse Mortgages Loans
A Reverse Mortgage Loan is a loan that allows homeowners aged 62 and older to convert a portion of the equity in their in their home into tax-free cash. HECM Reverse Mortgage loans are insured by the Federal Housing Administration (FHA).
With a traditional mortgage or home equity line of credit, you must meet minimum income and credit requirements to qualify for the loan, and you have to make monthly loan payments. With a Reverse Mortgage Loan, there are no credit score and generally no income requirements, nor do you make loan payments.
Yes eventually. However your payment is not due on your Reverse Mortgage Loan as long as you live in your home, you maintain it according to FHA requirements, and you pay required property taxes and insurance.
Yes. You keep the title to your home; the lender does not become a title holder. You own and can remain in your home as long as you meet all the Reverse Mortgage Loan requirements.
Generally, single-family residences, two to four-unit owner-occupied dwellings, townhouses, approved condominium units and some manufactured homes are eligible for a Reverse Mortgage Loan. The home must meet FHA minimum property standards. If home repairs are required, in some cases they can be completed using closing funds from the Reverse Mortgage Loan.
A Reverse Mortgage Loan usually does not affect eligibility for Medicare or Social Security benefits. Some government benefits such as Medicaid and Supplemental Security Income (SSI) may be affected by a Reverse Mortgage Loan. You should consult a qualified professional to determine if there would be any impact to your government benefits.
No. There are no credit score and generally no income requirements.