Reverse Mortgage

If you get a reverse mortgage of any kind, you get a loan in which you borrow against the equity in your home. You keep the title to your home. Instead of paying monthly mortgage payments, though, you get an advance on part of your home equity. The money you get usually is not taxable, and it generally won’t affect your Social Security or Medicare benefits. When the last surviving borrower dies, sells the home, or no longer lives in the home as a principal residence, the loan has to be repaid. In certain situations, a non-borrowing spouse may be able to remain in the home. Here are some things to consider about reverse mortgages:

Purchase and Refinance Eligible of Primary Residence

Borrower must be at least 62 years old at closing

1-4 Unit Properties

HUD approved reverse mortgage counseling required at the beginning of the application

No Debt to income ratio requirements

Equity allowed to be tapped into up to 80% of appraised value.