GETTING A REVERSE MORTGAGE

A reverse mortgage is a loan for senior homeowners that uses a portion of the home’s equity as collateral.
The loan generally does not have to be repaid until the last surviving homeowner permanently moves out of the property or passes away.

Eligibility for a reverse mortgage – For eligibility ... the FHA requires that all homeowners be at least 62.
Reverse mortgage vs. home equity loan – A home equity loan has strict requirements for income and credit
worthiness. A reverse mortgage has no nincome or credit score requirements.  Outliving the reverse mortgage – It cannot be outlived.  As long as at least one homeowner lives in the home as their primary residence and maintains the home in accordance with FHA.  Estate inheritance – In the event of death or that the home ceases to be the primary residence … the homeowner’s estate can choose to repay the reverse mortgage or put the home up for sale.  Loan limit – The amount available depends on four factors:
age, current interest rate, appraised value of home and imposed lending limits.  Proceeds – Proceeds can be received as: 1) a lump sum of cash, 2) equal monthly payments, 3) payments for a fi xed number of years, 4) a draw on a line of credit, or 5) any combination of above.  Contact a reverse mortgage specialist to explore options.

Source: Reverse Mortgage GuideAMS Senior Newsletter