What is a Reverse Mortgage?
This is a program which allows you to use the equity in your home
to provide cash or a monthly income, so that you may maintain your
independence and remain in your home. The plan was developed by
the U.S. Government Federal Housing Administration.
How do I know if this is right for me?
There are certain qualifications you must meet, some of which are
listed below. You should then consult your financial adviser. In
addition, each borrower is required to receive counseling to enable
him or her to thoroughly understand the program and how it works.
Lenders who offer Reverse Mortgages can provide a list of agencies
that are qualified to Mortgages provide this service.
Who can qualify?
You and your spouse, if you have one, must be 62 years old or older,
own your home or only have a small mortgage, and at least one borrower
must live in the home.
What about payments?
There are no payments to make. The interest accumulates and is added
back to the principal. The loan is only payable if all borrowers
are no longer living in the home due to death or moving out.
How much can I get?
The amount of the loan will depend on the manner in which you receive
payment(s), your age, interest rates, and the location and value
of your home.
What kind of payments can I receive?
Payments may be made as a single lump sum, lump sum with additional
payments, payments for a certain period, or life time payments.
What can I use the money for?
Anything you want to use it for.