What is a Reverse Mortgage?
A Reverse Mortgage is a loan that you do not
have to pay back. This loan lets homeowner convert the equity in his or
her home into cash. With a reverse mortgage, you can turn the value of
your home into cash without having to move or to repay a loan each month.
Who is eligible to qualify?
You must be at
least 62 years of age and own your own home. Yes,
to qualify for a Reverse Mortgage loan, you must be at least 62 years
of
age. If you have a joint borrower, including your spouse, that person
must also be at least 62 years of age. You must own and live in your
own home.
Are there any income requirements that must be met?
There are no income
requirements to receive a Home Equity Conversion Loan.
Are there any restrictions on how I can use the loan?
No. Use it to
pay medical bills or property taxes, repair your home or improve your
quality of life.
When do I repay the loan?
You may make repayment on your balance at
any time and apply any amount. However, you are not required to do so.
Will I still own my home?
Yes, you retain title to your home, which
passes to your heirs at death. The lender does not have title, you do.
What if something should happen to the lender?
If the lender defaults
on the loan for another reason, the Government will guarantee the loan.
If my loan exceeds the value of my home, are my heirs held
responsible after my death?
No, The Government requires that the lender may not
seek any repayment from your income, heirs, or other assets other than
the equity in the home.
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