What is a reverse mortgage?
A Reverse Mortgage is a special type of non-recourse loan that allows a senior homeowner to convert a portion of the equity in his/her home into cash. The equity built up over years of home mortgage payments can be paid to you. But unlike a traditional home equity loan or second mortgage, no repayment is required until the borrower(s) no longer use the home as their principal residence. Most reverse mortgages are also federally-insured.
A reverse mortgage is a special home loan available to seniors age 62 and over. It allows you to turn the equity you have in your home into cash, and typically does not have to be repaid until you die, sell your home, or move out. You can get the money in a single lump sum, as a regular monthly cash advance, or as a line of credit that you draw as needed. In the end the loan is paid off with the proceeds of the sale of the house. If the house sells for more than the loan amount, the owner of the house, or his or her heirs, gets the difference.
A reverse mortgage is a loan that enables senior homeowners, age 62 and older, to convert part of their home equity into tax-free income. There are no income or credit qualifications, and there are no monthly payments to make. You still keep title of the home and the loan only becomes due when the last borrower(s) permanently leaves the home. These loans are backed by the U.S Government or major financial institutions. We will help educate you one step at a time.
You can use the funds from the reverse mortgage for anything: • daily living expenses • home repairs or modifications • health care expenses, including prescription drugs or in-home care • pay-off of existing debts • lifestyle enhancement • prevention of foreclosure • payoff your first or second mortgage • and any other needs you may have There are no income or medical requirements to qualify.
