Reverse mortgage loans are a type of home loan that is available only to people over 62 years of age.
Homeowners with sizeable equity in their homes can borrow against the equity and use that loan money for any purpose! Homeowners are not subject to any specific income or credit requirements to qualify to receive reverse mortgage loans because the loans are secured by the equity in the homes. Unlike conventional mortgages, reverse mortgage borrowers do not make monthly payments to repay the loan.
The Reverse Mortgage Loan amount a borrower can get depends on a number of factors, including the amount of equity in the home, the borrower's ages and current interest rates. Seniors who take out reverse mortgages retain ownership of their homes; lenders do not take title to the homes (Reverse Mortgage for Seniors).
To be eligible for a Reverse Mortgage loan, some key requirements are:
- Be at least 62 years of age or older
- Live in your home as your primary residence and have sufficient equity in it
- Be able to pay any existing mortgages through the Reverse Mortgage
- Live in a single family home, two to four-unit owner-occupied home, townhouse, approved condominium unit, or certain manufactured homes
- Attend a HUD-approved counseling session (HUD Reverse Mortgage)
- Continue to pay property taxes and homeowners insurance
