You, and any co-borrowers, must be at least 62 years of age. At least one of the owners must occupy the home as a principal residence and the home must be free and clear or have no more liens on the home then could be paid off from the proceeds of the new Reverse Mortgage.
NO Income - NO Credit - NO Problem!
Seniors do not have to meet any income requirements to qualify and other than getting a credit report to find out about liens that may be on the home, a Reverse Mortgage has no credit requirements to qualify. Single-family one-unit dwellings are eligible for all reverse programs. Some 2-4 unit owner occupied dwellings along with some condominiums and manufactured homes may be eligible. Mobile homes and cooperatives are not eligible properties for a Reverse Mortgage.
The Facts About Reverse Mortgage
A Reverse Mortgage is a sophisticated financial planning tool that enables seniors to stay in their home and maintain or improve their standard of living without taking on a monthly mortgage payment.
It is a special type of loan made to senior homeowners to enable them to convert some of the equity in their home to cash to pay for living expenses, home improvements, health care, life insurance, or other needs.
With a Reverse Mortgage, the payment stream is "reversed". That is, payments are made by the loan to the homeowner, rather than repayments by the borrower as occurs with a regular home mortgage. While many seniors choose to pay something monthly, they are never required to with a Reverse Mortgage.
Reverse Mortgage Myth #1
Myth: When I take out a Reverse Mortgage, I am signing my home over to the Government or the Lender.
Fact: Positively Not! Your home remains in your name. When you sell your home or vacate it for other reasons, only the accrued interest plus what the lender has paid you or on your behalf through the years is due and payable. Any proceeds in excess of this amount always belong to you or to your heirs. If your heirs choose to keep the home then they either refinance the amount owed or pay it off with other proceeds like life insurance. With a Reverse Mortgage You Always have Full Control and Ownership of your home.
Reverse Mortgage Myth #2
Myth: When I take out a Reverse Mortgage, I can lose my home because I have a mortgage.
Fact: You can never lose your home under this program because you have not made payments; there are no required monthly payments to make with a Reverse Mortgage. Just as now, however, you are required to keep your taxes and homeowners insurance paid, (which you can take money out of your Reverse Mortgage credit line to do). This program also requires this to be your principal residence and you are required to keep the home in good repair.
