A reverse mortgage is a loan type that is available to homeowners who are 62 years or older. It allows them to convert the equity in their home into one of the following or a combination of the three:
-A lump sum payment - Monthly income - Line of credit
The product helps people that want to tap into the equity in their homes and use the money as they want to use it. This loan is called a reverse mortgage because it is the opposite of a traditional mortgage. Instead of making monthly payments to a lender, the lender makes payments to you as the borrower. You are not required to pay back the loan until the home is sold. As long as you live in the home, you are not required to make any monthly payments towards the loan balance, but you must remain current on your property taxes, homeowners association dues and insurance.
How Do I Qualify?
It's simple and easy - qualifying depends on these important factors:
You must be age 62 years or older, and Live in and own your home (must be your principal residence)