What is a HUD reverse mortgage?
This type of HUD mortgage is proving to be very popular for seniors who are looking for a way of utilizing the equity in their home to raise finance, without the worry of ever defaulting on repayments, because there aren’t any repayments. A HUD reverse mortgage works differently to that of a regular home equity loan. There are no monthly payments, unlike an equity loan, hence the word ‘reverse’. With a home equity loan the equity in your home increases as you make each monthly repayment. With a reverse mortgage, the equity in your home is reduced as you receive payments. With a HUD reverse mortgage you are guaranteed to receive the amount stated no matter how long you live in the home. Who can qualify for a HUD reverse mortgage? The FHA requires that the person(s) applying are homeowners, own outright or owing very little on the home and are at least 62 years of age. There are no medical or income checks. What type of home is eligible? If you own and occupy a single family dwelling or
