Reverse Mortgages for Senior Homeowners

A reverse mortgage is a loan that you don't repay as long as you live in your home or until the last borrower leaves the home. The lender makes a home equity loan which is not payable until the home is sold. In other words, it is usually the proceeds of the sale of the house that pays off the loan.

The most common reverse mortgage is known as a Home Equity Conversion Mortgage. They are insured by HUD.

Criteria:

1. Borrower must be over 62 years old.
2. This home must be primary residence.
3. Homeowner continues to be responsible for insurance and taxes.

The reverse mortgage funds can be used in many way including home improvement or just as the lender sees fit. Many seniors are using the equity in their home to fund stays in assisted living facilities for their spouse. The funds can be taken in a lump sum, in monthly payments or as needed.

Make this part of your overall financial plan. Keep in mind though that if you plan to leave your home to an heir, the loan will have to be satisfied to transfer the home to the heir. There are many reputable lenders who do reverse mortgages. Give me a call and I'll help direct you to a courteous and professional loan officer!
Mindy 937-974-1787.