A reverse mortgage is a unique FHA-Insured loan that enables older homeowners (62+) to convert a portion of the equity in their homes into cash – without having to sell the home, give up title/ownership, or take on a new monthly mortgage payment.
How Much Do I Qualify For?
There are 3 factors that go into determining how much someone qualifies for, they are:
- Age of the youngest borrower
- Home value
- Interest rate
How Can I Receive the Money?
- Lump sum taken at closing
- Monthly advances
- Line of credit, or
- Combination of all three
- At least one borrower on title must be age 62 or older
- The home must be your principal residence and meet standards set by the U.S. Department of Housing and Urban Development (HUD) on property type/condition
- Property types include: single-family homes, 2-4 unit properties, condominiums/townhouses, and manufactured homes (some additional requirements for condos and manufactured)
Using a reverse mortgage to pay off or take the place of an existing mortgage may a solution for you. Of the proceeds available from the reverse mortgage all existing mortgages or liens must be paid off first, freeing up the burden of monthly payments.
*Please Note: The homeowners are responsible for the payment of property taxes, homeowner insurance, and the maintenance of the property.