When must a reverse mortgage be paid back?
A reverse mortgage must be paid back when one of these items occurs
-You chose to pay it back or sell the home. There is no pre-payment penalty or other requirement to keep the mortgage for any time period.
-All borrowers move from the home. The home must be owner occupied by one of the borrowers (6 months and 1 day a year or more).
-All borrowers are deceased. The heirs will have up to 6 months to sell the home (with an extension for another 6 months available).
What is a reverse mortgage?
A Reverse mortgage is a loan available to seniors over the age of 62 which allows them to convert the equity in their home into cash. A reverse mortgage can also be used to purchase a home.
How can I use the money I receive from a reverse mortgage?
There is no restriction on how the proceeds from a reverse mortgage can be used.
How can I qualify for a reverse mortgage?
To qualify for a reverse mortgage a borrower must be at least 62 years old, own a home, and have sufficient equity in that home. A lender will also complete a financial assessment of the borrower.
Will my home qualify for a reverse mortgage?
Single-family homes, 2-4 unit properties (one unit occupied by owner), FHA-approved manufactured homes, HUD approved condominiums, and townhomes are eligible for a reverse mortgage.
How much money can I get from a reverse mortgage?
The amount will vary borrower to borrower and is based on a few factors including age of the youngest borrower, current interest rates, value of your home, and how much you may owe on an existing mortgage.