Reverse Mortgage for Seniors
What is a reverse mortgage?
Reverse mortgages are popular with seniors that are 62 and older. A reverse mortgage lets you borrow the equity in your home. What is great about a reverse mortgage is you do not have to pay the money back until you no longer use the home as your principal residence. A reverse mortgage is great for seniors who want to supplement their income, social security, pay unexpected expenses, make home improvements, etc.
Can I qualify for a reverse mortgage?
To qualify you must be 62 and older, own your home, live in the home, and have the resources to pay property expenses which can include property taxes and homeowners insurance.
What types of homes are eligible?
Your home must be a single-family home or a 2-4 unit home with one unit occupied by the borrower. HUD-approved condominiums and manufactured homes are also eligible.
What are the differences between a reverse mortgage and a home equity line of credit (HELOC)?
With a HELOC you must make monthly payments. With a reverse mortgage, there are no monthly principal and interest payments. With a HELOC: you have a limited time to draw funds and you need to make payments. A HELOC can also be frozen any time your property value drops. A reverse mortgage line of credit does not require payments and can never be frozen, even if property value drops.
How much money can I get from my home?
The amount of money you can get depends on the borrower’s age and mortgage limits in your area.
Does a reverse mortgage cost more than a traditional mortgage?
A reverse mortgage requires the same closing cost as a traditional mortgage. This can include a loan origination fee, appraisal fee, title fees, etc.
Can any lender provide a reverse mortgage?
A reverse mortgage is a specialty product that is only available to seniors. Few lenders offer this product.