Reverse

Mortgages

If you own a home and are at least 62 years old, you may be able to quickly get money by taking out a reverse mortgage. The money can be used for anything from long-term care to vacations. A Reverse Mortgage is a financial arrangement that is designed to allow older homeowners to convert the equity in their home in to cash without having to move or make payments.

The most common reverse mortgage is a Home equity Conversion Mortgage or HECM. The HECM is an FHA insured mortgage and can be used to convert equity in to monthly streams of income or a line of credit.

The basic requirements are

• The owners must be 62 or older
• You must own the property
• The property must be your principal residence
• You must participate in a consumer information session

A HUD reverse mortgage does not require repayment as long as the home is the Borrower’s principal residence. Lenders recover their principal, plus interest, when the home is sold. The Borrower can never owe more than the home’s value.