Who Can Benefit From A Reverse Mortgage

Who Can Benefit From A Reverse Mortgage



Who Can Benefit From a​ Reverse Mortgage?
Reverse mortgages are becoming an​ increasingly popular lending option for older Americans .​
Reverse mortgages allow homeowners over the​ age of​ 62,​ the​ ability to​ convert a​ portion of​ their homes’ equity into cash,​ which they can receive in​ monthly installments or​ through a​ line of​ credit .​
This short article will provide a​ brief overview of​ the​ reverse mortgage process.
Reverse mortgages provide a​ sense of​ financial security for older Americans because they provide a​ supplement to​ social security income.
Individuals may receive payments on​ a​ term,​ tenure or​ line-of-credit basis .​
Repayment of​ the​ loan is​ not required unless and until the​ home owner decides to​ sell the​ home,​ or​ no longer uses the​ home as​ his/her primary residence .​
When either of​ these two conditions is​ met,​ the​ homeowner is​ then required to​ pay back the​ cash they received from the​ reverse mortgage .​
This repayment includes interest and other fees .​
The remaining equity,​ if​ any,​ belongs to​ the​ homeowner.
In order to​ be HUD eligible for a​ reverse mortgage loan,​ an​ individual must obviously own the​ home in​ question,​ must be 62 years or​ older,​ own the​ home outright,​ or​ have a​ mortgage balance low enough so that the​ mortgage balance can be paid in​ full at​ closing with the​ proceeds from the​ reverse loan .​
The individual must also go through HUD approved counseling .​
Single family homes,​ two or​ four unit properties,​ town homes,​ detached homes and some condominiums and manufactured homes are all eligible for a​ reverse mortgage.
Reverse mortgages can be a​ great option for older Americans .​
They provide extra income that often helps older Americans meet their financial needs .​
It is​ an​ extremely attractive option for individuals who plan to​ stay in​ their homes indefinitely,​ because the​ loan does not have to​ be repaid unless the​ individual moves out of​ the​ house.




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