What is a reverse mortgage?
A reverse mortgage is a special type of home loan that allows a homeowner convert a portion of the value in his or her home into cash. The value built up over years of home mortgage payments can be paid to you. But unlike a traditional home equity loan or second mortgage, no repayment is required until the borrower(s) no longer use the home as their principal residence. HUD’s reverse mortgage provides these benefits, and it is federally-insured as well.
A reverse mortgage allows you as the homeowner to take a portion of the equity in your home and convert it into cash on hand. The reverse mortgage is different than a second mortgage or a home equity loan because you do not repay the loan until the time you no longer live in your home as your principle residence. This is a federally insured program that is sponsored by HUD.
A REVERSE Mortgage is a special type of mortgage loan. It is guaranteed by the Federal government and allows homeowners age 62 and older to take the equity out of their home in the form of tax-free cash. There is no repayment necessary for as long as you live there – that means no monthly payments!
A reverse mortgage is a special type of home loan that lets a homeowner convert a portion of the equity in his or her home into cash. The equity built up over years of home mortgage payments can be paid to you. But unlike a traditional home equity loan or second mortgage, no repayment is required until the borrower(s) no longer use the home as their principal residence. HUD’s reverse mortgage provides these benefits, and it is federally-insured as well. 2. Can I qualify for a HUD reverse mortgage? To be eligible for a HUD reverse mortgage, HUD’s Federal Housing Administration (FHA) requires that the borrower is a homeowner, 62 years of age or older; own your home outright, or have a low mortgage balance that can be paid off at the closing with proceeds from the reverse loan; and must live in the home. You are further required to receive consumer information from HUD-approved counseling sources prior to obtaining the loan. You can contact the Housing Counseling Clearinghouse on 1-800-56
