- Borrower must be at least 62 year of age.
- Have the financial ability to pay ongoing property expenses including taxes and insurance.
- Occupy the property as your primary residence.
- Own the property outright or have a small mortgage balance.
- Not be delinquent on any Federal debt.
Key Benefits of Reverse Mortgages
Retirement security. If you need to add to your income in retirement, a reverse mortgage can help supplement. It gives you the freedom to use your retirement savings in the ways that work best for you.
Free of taxes. You can use the cash you get from a reverse mortgage anyway you want, with no tax liability.
Flexible payment options. You can receive the funds either as a line of credit, a lump sum, a tenure payment, or a term payment. You may also choose a combination of these options.
No change in homeownership. You will retain ownership of your home and can still pass it down to your heirs.
Before deciding to get a reverse mortgage, talk to an expert to consider all possible risks against the advantages. Traditional reverse mortgages or HECM loans are insured by the Federal Housing Administration (FHA). They require joining an independent counseling session to ensure that you adequately understand the reverse mortgage program and process, and that it is the best fit for your needs.
If you’ve carefully weighed your options, get in touch with us today.