Whats the difference between a reverse mortgage loan and a home equity loan?
With a traditional second mortgage, home equity loan, or line of credit: • You must have sufficient income to make loan payments • Your existing debt must be within acceptable limits A reverse mortgage loan: • Has a credit score or employment requirements when reverse mortgage loan proceeds are used to purchase a new residence.1 • Does not require monthly mortgage payments required with a traditional mortgage loan. However, you must continue to pay taxes and insurance premiums for the property, as well as maintain the property to FHA standards like a traditional mortgage Repayment is required if the borrowers no longer reside at the property, taxes and insurance on the property are not kept current, the property is not maintained to FHA standards, or other program requirements are not satisfied.
