Whats the difference between a reverse mortgage and a traditional home equity loan?
With a traditional mortgage, or a home equity line of credit, you must have sufficient income versus the amount of debt you have to qualify for the loan. Plus, you are required to make monthly mortgage payments. The reverse mortgage is different in that it pays you and is available regardless of what your current income is. The amount you can borrow depends on your age, the current interest rate, other loan fees, and the appraised value of your home or FHA’s mortgage limits for your area, whichever is less. Generally, the more valuable your home is, the older you are, the lower the interest, the more you can receive. You don’t make payments, because the loan is not due as long as the house is your principal residence. Like all homeowners, you are still required to pay your real estate taxes and other conventional payments like insurance & utilities, but with an FHA-insured HUD Reverse Mortgage, you will never lose your home for not making a payment because no payments are due”. Q. Can
