Find Out if a Reverse Mortgage is Right for You
Get the Facts About All Reverse Mortgage Options
What is a Reverse Mortgage? A low-interest federally insured loan that allows senior homeowners to convert a portion of the equity in their home into tax-free cash.
|Who Can Qualify for a Reverse Mortgage?|
|Borrower(s) MUST BE 62 years of age, or older|
|Must occupy the home as your principal residence|
|No taxes are paid on cash from a reverse loan|
Reverse Mortgages Require No Monthly Payments. You are responsible to maintain your home, pay your real estate property taxes and carry homeowners insurance.
HUD Reverse Mortgage Counseling Requirement. Before you can complete your reverse mortgage loan application, you must receive a counseling certificate from a counselor approved by HUD.
The proceeds from a reverse mortgage can be taken in several ways, including:
- Line of Credit: You make withdrawals whenever you choose up to the amount available.
- Lump Sum: You receive all of your proceeds at the time of settlement.
- Tenure Plan: You receive fixed monthly payments as long you own and occupy the home as your primary residence.
- Combination: You can blend all of these options; for example, draw a lump sum while taking a monthly check and leave some money in a line of credit.