In recent years, reverse mortgages are quickly gaining popularity. The product was designed for people that have a limited income stream during their post-employment years and wish to utilize the accumulated equity in their home to cover everyday living and healthcare expenses. The term “reverse mortgage” is derived from the nature of the loan. Instead of the homeowner making monthly payments to the lender, the lender is essentially making payments to the borrower. Of course you are required to continually pay homeowner’s insurance, property taxes, and HOA dues (if applicable) if you take out a reverse mortgage, but you are not required to make any mortgage payments on the loan as long as the home continues to serve as your primary residence.
Below is a quick overview of the general eligibility requirements and basic features of a reverse mortgage:
Attached is a link to reverse mortgage information provided by the National Reverse Mortgage Lenders Association. These materials are not from HUD or FHA and were not approved by HUD or a government agency
Contact one of our loan consultants today to further discuss your options!