mortgage is an important and difficult one. It is not uncommon for seniors to find it difficult to set aside the belief that the equity in their home is somehow off limits, and to overcome feelings of fear or guilt about pursuing a reverse mortgage— even when it may be the best solution for meeting their financial needs. WHAT IS A REVERSE MORTGAGE?
A reverse mortgage enables you to withdraw a portion of your home’s equity, use it any way you choose (subject to HUD guidelines), make no monthly mortgage payments (borrower must remain current on property taxes, homeowner’s insurance and HOA dues), stay in your home as long as you like and when you are ready to sell your home or have passed, the loan is repaid. This program is insured by the Federal Housing Administration (“FHA”). You do not forfeit title to your home or lose any other rights as the homeowner. You or your heirs decide when or if the home is to be sold, and after repaying the loan balance, all remaining equity in the home belongs to you or your heirs. WHO QUALIFIES? Qualifying for a reverse mortgage simply requires that the homeowner(s) be 62 years of age or older, and own or be purchasing a home that is considered their primary residence. The home must meet standard appraisal guidelines for property type, value and condition. Since the borrower does not make a monthly mortgage payment (borrower must remain current on property taxes, homeowner’s insurance and HOA dues), there is only nominal income and credit review to ensure the reverse mortgage is the best solution.