What is a Reverse Mortgage?
A loan that enables somone who owns a house, 62 and older, to convert accumulated home equity into tax-free income. That is accomlised without selling the home, without giving up title, or having mortgage payments to make monthly.
The mortgage payment stream is “reversed” and the lender makes payments to you.
Eligible property types are single-family houses, manufactured houses built after June 1976, qualified condominiums, and townhouses.
Your Retirement Years Can Be Enhanced By A Continuous Income Stream
You can use the funds from the reverse mortgage for anything:
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daily living expenses, home repairs or modifications
- vacations, cruises, lifestyle enhancements
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health care expenses or in-home care
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pay-off of existing debts, mortgages or foreclosure
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and any thing you may have in mind
There are no income or medical requirements to qualify for a reverse mortgage.
What are Your Payment Options When Applying For a Reverse Home Mortgate Loan?
You can choose how to receive the money:
The total amount of money you can get from a reverse mortgage depends on:
The money that is funded from a reverse mortgage is tax-free; it's not treated as additional income by the feds.
A reverse mortgage will not affect your Social Security or Medicare benefits.
Paying Back Your Loan Is Not Something You Need To Do
No monthly payments are due on a reverse mortgage while it is outstanding.
The loan is repaid only when you:
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no longer occupy the house as your principal residence (the last remaining spouse, in cases of couples)
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pass away and die
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sell the home in which case the funds need to be accounted for
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or permanently move out in which case adjustments need to be made.
The amount owed can never exceed the appraised value of your home.
If, for any reason, the home is sold and the sales proceeds exceed the amount owed on the reverse home mortgate loan, the excess money goes to you or your estate.