Whats the difference between a FHA Reverse Mortgage and a bank home equity loan?
With a traditional second mortgage, or a home equity line of credit, you must have sufficient income in relation to debt to qualify for the loan, and you are required to make monthly mortgage payments. The reverse mortgage is different because it pays you, and is available regardless of your current income. You don’t make payments, because the loan is not due as long as the house is your principal residence. Like all homeowners, you still are required to pay your real estate taxes, hazard insurance and other property charges. Unlike a traditional second mortgage, with HECM, you cannot be foreclosed or forced to vacate your house because you don’t make your principal and interest payments. Can the lender take my home away if I outlive the loan? No! You do not need to repay the loan as long as you or one of the borrowers continues to occupy the property as the primary residence, keep the taxes and insurance current and perform the other obligations of the mortgage. Will I still have an e
