Key Points of Reverse Mortgage Senior Loans:
-Must be at least 62 years old
-House must be primary residence
-Mortgage must be either fully paid or have a small balance
-No income or credit score requirements
-Payment can be a lump-sum, monthly cash payout, line of credit held in reserve, or combination of all three
-Can be used to Purchase a new home or refinance an existing home.
-Can be a good alternative for seniors struggling with monthly bills, yet sitting on a significant amount of equity in their homes.
You do not need to repay the loan as long as you or one of the borrowers live in the home. As long as you keep the taxes and insurance current a lender cannot foreclose on the home.
The amount you can borrow depends on your age, the current interest rate, and the appraised value of your home or FHA’s mortgage limits for your area.
When your home is sold, you or your estate will repay the cash you received from the reverse mortgage plus interest and other fees, to the lender. The remaining equity in your home, if any, belongs to you or to your heirs. The borrower is guaranteed to never owe more than the value of the property at the time it is sold.