A home is a big investment. As you continue to own a home, it builds equity over the years. This article provides a basic guide of reverse mortgages and how they put the power of your home’s equity back in your grasp.
What are reverse mortgages?
A reverse mortgage is a program meant for elders aged 62 and up. It allows them to borrow some of the equity that has built up for their home in the form of a loan. A reverse mortgage lender offers participants to choose a loan type. From there, they can decide if they want a line of credit or lump sum of funding.
How do you qualify for a reverse mortgage loan?
To qualify for a reverse mortgage loan, you have to meet these criteria:
- Owner of the property bust be at least 62 years old
- Home must be completely owned or be mostly paid off
- Must show finances are available to continue paying property taxes
- Property must be the primary residents
Once you’ve qualified and been approved for this kind of loan, it’s then time to decide which loan type you’ll utilize.
Reverse mortgage Types
There are multiple loan types to choose from:
- HECMs or Home equity conversion mortgages can be used for almost anything. They are supported by Urban Development and the U.S. Department of Housing
- Single-Purpose Reverse Mortgages are more affordable. They can be provided by the state and can be used for specific reasons specified by the loan lender.
- Proprietary reverse mortgages are not supported by the government. They come with their own requirements for eligibility. These loans are private and easy to obtain.
Reverse mortgages are helpful for life expenses. Speak with a reverse mortgage lender today to explore your next loan options.
About the Author
Raena Everett
Raena has an exceptionally positive outlook on life. She believes every day presents a new and exciting adventure. She also applies this attitude towards her work. She was raised in Bangor, Maine until she moved to Venice in 2011. She graduated from the University of Maine at Orono with a bachelors degree in public management. She has been an entrepreneur her entire life, owning several small businesses in Maine. She contributes her success to her problem solving skills and her commitment to excellent customer service. These skills will easily carry over to her real estate career. Her market knowledge and customer service will provide great service to her real estate clients.
She is currently a Realtor(R) for Coldwell Banker Residential Real Estate in the Venice office.
