Reverse Mortgages are for homeowners who are at lease 62 years old, have equity, and want additional monthly income.
A reverse mortgage is a loan secured by your home that turns your equity into cash.
The bank pays you from the equity in your home. There is no restriction on how you can use the money. Tax-free proceeds.
What does the lender expect from me?
You must maintain the property in reasonably good condition, pay the property taxes and the homeowners insurance and any homeowner’s association dues you may have.
And of course, the lender expects you to continue to occupy the property.
A reverse mortgage can help delay accessing Social Security in order to boost your lifetime retirement income. They are insured by FHA & allow seniors to age in place & achieve retirement security.
When does the Reverse Mortgage need to be paid off ?
When you sell the property or no longer occupy your home as your primary residence for a period of 12 months or longer, refinance, permanently move out, or pass away.
Will my heirs still receive an inheritance?
Yes. How much equity will remain will depended on such variables as how much money you draw, how long you stay in your home, home appreciation, your home experiences, and interest rates (if you have a variable interest rate loan).
Since these transactions are complex, you must consult with a HUD-approved housing counselor before you submit your application.