How Does a Reverse Mortgage Work?
Reverse mortgages allow a home owner to borrow equity. Instead of making payments to the lender, the lender makes payments to the borrower. Payments can be made as follows: A lump sum Monthly, for as long as the borrower occupies the home Periodic advances through a line of credit Combination of any of the above Who Can Qualify for a Reverse Mortgage? Anybody over the age of 62 who owns a home can qualify for a reverse mortgage, if there is adequate equity in the home. Existing mortgage(s) will be paid off. Deferred maintenance / repairs will be required, if necessary. FICO scores do not apply and credit history is irrelevant.
- All borrowers must be 62 and older
- Must own property and occupy as primary residence
- Participate in an information counseling session
- Property must meet FHA property standards
- Maintain home with needed repairs, property taxes and insurance.