What Is a Reverse Mortgage?
A reverse mortgage allows you to borrow against the equity you’ve established in your home. To be eligible, you must be age 62 or older and own your home free and clear, or have a remaining mortgage balance that can be paid off by the reverse mortgage. You’ll want to consult a tax advisor to confirm this, but in most cases, a reverse mortgage gives you access to tax-free funds. Instead of making payments, you can choose to receive them, thus the “reverse.” You can also now purchase a home with a Reverse Mortgage and make no payments as long as you live in the home, pay your property taxes and insurance, and maintain proper upkeep of the property. Ask your Reverse Mortgage Specialist for more information.
Why Get a Reverse Mortgage?
There are no restrictions on how you may use proceeds received through a reverse mortgage. You can direct the funds toward a variety of purposes, including:
- Supplementing retirement income
- Planning for long-term care needs
- Remodeling or repairing your home
- Covering health care expenses
- Paying property taxes
- Growing your investment portfolio
- Even to purchase a second or vacation home
- Reducing high-interest debt
Reverse Mortgage Eligibility
Reverse mortgage eligibility requirements are quite simple. There are no income, employment or credit qualifying restrictions. All homeowners must be age 62 or older and occupy the property as their principal residence. The home must be owned free and clear or have a remaining mortgage balance that can be paid off by the reverse mortgage. The property must be a single-family or a one-to-four unit, owner-occupied dwelling. Townhomes, detached homes, condominium units, planned unit developments (PUDs), and some manufactured homes are eligible. The home must meet Department of Housing and Urban Development (HUD) minimum property standards. In some cases, home repairs can be made after a reverse mortgage closing.
Contact us for more information, and to see if a reverse mortgage is the right option for you. One of our loan officers can answer your questions and see if you qualify.