A Reverse Mortgage loan program allows senior buyers a way to purchase a home to live for the rest of their life, but without making a monthly payment. Monthly payments are added on to to the balance due. So, if a person needs to have more money for retirement years, a Reverse Mortgage might be the way to stay in their home. The older the person is, the higher the loan amount that a person can qualify for. Seniors qualify for a reverse loan based on the property value and good condition, not based on credit and income. This is a big factor for retirees with limited income and credit. When the last qualifying borrower passes away, the loan becomes due and payable. Call us to learn how a Reverse Loan can help you have more money for your retirement years.
Typical Loan Features – Reverse Mortgage
- No credit score or income requirements
- No monthly loan payments made by the borrower, rather the payment is added on to the loan balance
- Loan amount based on the home value and the borrower’s age
- The property condition must be good based upon an appraisal.
- Money received is not taxable.
- Counseling services available and approved by Department of Housing and Urban Development
- Borrower retains full ownership until the property is sold.
- Property taxes and insurance must be maintained and paid current.
Typical Loan Requirements – Reverse Mortgage
- Minimum age for borrower is 62
- Must be primary residence
- 35-40% down payment may be required, depending upon the borrower’s age.
- Once heirs inherit this property, it must be sold or refinanced based on 95% of original appraised value