A reverse mortgage is an easy way for homeowners, 62 years of age or older to access the equity in their home (primary residence only). There are no income, credit or asset requirements, nor are there any regular monthly payments. You always retain the deed and all rights of home ownership and are free to refinance, payoff or sell the home at any time. You live in the home for as long as you choose to live there and the bank never “owns” the home. Eligible homes include 1,2,3,4 family properties and HUD approved condominiums.
Reverse mortgages are ideal for homeowners who are retired or no longer working and need to supplement their income. You can get the money in a lump sum, fixed monthly payments, a line of credit or a combination of these options. The money is tax free and may be used in any way you wish; to pay current bills, meet future financial obligations or simply enhance your lifestyle. Your lender cannot take the property away if you outlive your loan or can you be forced to sell your home to pay off your loan, even if the loan balance grows to exceed property value.
Downsizing to a new home? A reverse mortgage can also be used to purchase a home. Assets would need to be verified, but with as little as 40% down, you can purchase a new home and never have a monthly payment for the remaining amount owed. Cash from the sale of your first home can then be set aside, increasing your monthly cash flow .