Reverse Mortgages Overview
Reverse Mortgages – The Basics
 A reverse mortgage is a special type of home loan that allows homeowners (at least 62 years of age) to borrow money from their home without the requirement of paying it back during their lifetime, as long as they live in the home. Reverse mortgages are for people who currently do not have a mortgage or have a mortgage balance. There are no credit or income requirements to qualify.
Opposite of Traditional Mortgage
A reverse mortgage is the opposite of a traditional mortgage in which you are required to make a payment. With a reverse mortgage, the lender sends you the money and you make no payments.
Giving seniors the financial security they deserve
Reverse mortgages provide a safe way for older Americans to get financial security.
With a reverse mortgage, you remain the owner of your home. And, reverse mortgages allow homeowners to stay in their home without having to make a monthly payment.
Without reverse mortgages, an older homeowner would have to sell their home or take out a loan if additional money were needed.
Reverse Mortgages – Federally Insured
Most reverse mortgages are federally insured by the US Department of Housing and Urban Development’s Federal Housing Administration (FHA).
Payments from Reverse Mortgages
Proceeds from a reverse mortgage can come in these forms (or any combination of):
- Lump Sum
- Credit Line
- Monthly Payments
Cash from a reverse mortgage can be used for anything you desire, but is often used to help with:
- Living expenses (utilities, food, etc.)
- Home Repairs
- Medical expenses and prescription drugs
- Property taxes
- Homeowners insurance
- Purchase of Car
- Dream Vacations
- Assisting friends or family member
Live in Your Home – No Payments Required
With a reverse mortgage, you can live in your home for the rest of your life and never have to make a monthly payment or pay back the loan. And - never owe more than your home is worth.
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