This is for Homeowners aged 62 and older that gives you the opportunity to get tax-free cash payments while remaining in your home. This income can serve as a much-needed source of funds to pay for retirement expenses.
A reverse mortgage is a contract where a homeowner can access the equity in their home as cash from a lender. The lender pays that equity to the homeowner either in a single lump sum payment, a monthly disbursement over a set term period, or in monthly payments for as long as the homeowner resides in the home.
The basic requirements mandated by the FHA are you must be 62 or older, live in the house as your primary residence, maintain the property, pay your real estate taxes, and keep up with your homeowners insurance.
Aside from those payments though, you don’t have to make a mortgage payment anymore. The lender pays you instead, thus making it “reverse.”
Some of the best reasons to consider a reverse mortgage are to solve a long-term problem while you have no plans to bequeath your home, you don’t plan on moving, and your spouse is also 62.
Reverse mortgages aren’t advised for people who are already financially distressed because if they fail to comply with the contract, they could lose their homes to foreclosure.
Have questions? Give us a call! One of our mortgage specialists would be happy to answer all of your questions.