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Once qualified for a reverse mortgage a homeowner can receive it all at once, through monthly increments, or through a line of credit. Depending on the lender and the expected needs of the borrower, any of the above could possibly be the best fit
A reverse mortgage is unlike most other loans in that it does not require that an applicant meet certain credit and income criteria or start immediate monthly repayment schedules. Instead, a homeowner qualifies on the bases of the value of the home, as long as he or she is 62 years of age or older. If you are interested in a loan with no monthly payments, fill out our short form today.
Like FHA loans, there is a federally insured reverse mortgage. The Home Equity Conversion Mortgage, also known as HECM. To qualify for a federally insure reverse mortgage, a borrower must own a single-family unit, a 2-4 unit building or another federally approved unit.
Once the borrowing period has ended, which does not occur during the life of the homeowner unless he or she decides to sell, the home does not necessarily have to be sold. The homeowners heirs can take out a regular mortgage in order to keep the home. Also, if the house is sold and the selling price does not cover the amount of the loan, the loss is covered by insurance, and not through the borrowers estate.
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