A reverse mortgage loan is a type of mortgage loan designed for borrowers aged 62 years or older. A reverse mortgage allows homeowners to convert a percentage of the equity in their home into cash, fixed monthly advances, or a line of credit — and defer repayment of the loan so long as they live in the home and pay the property charges, like taxes and insurance.
You are paid an advance on a percentage of your home equity. There are no required monthly mortgage payments. The loan typically becomes due and payable when the last surviving borrower permanently moves out of the home or passes away.
• Borrower(s) must be 62 years or older
• Property must be a 1-4 unit primary residence
• Must meet minimal credit and property requirements
• Must receive reverse mortgage certificate from a HUD-approved agency
• Must not be delinquent on any federal debt
A reverse mortgage can be structured to allow for little to no money out-of-pocket!