Many times, seniors lack the income needed to be eligible for traditional home equity loans, making them unable to access the investment that added up over the years without selling their home and moving away. Reverse mortgage loans are a way for seniors to get the money they need when there are no other choices.
Stay in Your Home
An essential factor seniors are grateful for with reverse mortgage loans is the ability to keep their home. As people begin to age, one of the most important things for them is to remain comfortable and feel secure in the decisions they are making. While staying in your home, homeowner’s insurance and property tax remain your responsibility, and complete control remains with you. At any time, you can decide to sell your home and repay your loan.
Easy Eligibility
Unlike traditional home equity loans, eligibility is easy for reverse mortgage loans, due to loan repayment not expected after you leave your home.
Qualifications for a reverse mortgage loan include:
* Must be at least 62 years of age.
* Must own your home (can have existing mortgage as well).
* Must reside in your home and insurance and property taxes be maintained.
Secured with Federal Insurance
Reverse mortgage loans are secure due to them being insured by the federal government. All your payments are guaranteed and insured by the government. In addition, by being federally insured, a borrower will never have to pay more than what their house is worth. So, if your loan is more than what your house is worth, you would be expected to pay back the lesser amount.
Payments Delayed Until You Leave the Home
Repayment of the loan is not expected until the last homeowners no longer reside in the home. After the last homeowner either moves or passes away, the loan is then called to repay. To pay the loan, the house is sold. At this time, lender fees, mortgage insurance premiums, and interest rates are added in.
Reverse mortgage loans can be a great way for seniors to remain in their home and stay within their budgets. Visit the website for more information.
