A home is a big investment. As you continue to own a home, it builds equity over the years. This article provides a basic guide of reverse mortgages and how they put the power of your home’s equity back in your grasp.
What are reverse mortgages?
A reverse mortgage is a program meant for elders aged 62 and up. It allows them to borrow some of the equity that has built up for their home in the form of a loan. A reverse mortgage lender offers participants to choose a loan type. From there, they can decide if they want a line of credit or lump sum of funding.
How do you qualify for a reverse mortgage loan?
To qualify for a reverse mortgage loan, you have to meet these criteria:
- Owner of the property bust be at least 62 years old
- Home must be completely owned or be mostly paid off
- Must show finances are available to continue paying property taxes
- Property must be the primary residents
Once you’ve qualified and been approved for this kind of loan, it’s then time to decide which loan type you’ll utilize.
Reverse mortgage Types
There are multiple loan types to choose from:
- HECMs or Home equity conversion mortgages can be used for almost anything. They are supported by Urban Development and the U.S. Department of Housing
- Single-Purpose Reverse Mortgages are more affordable. They can be provided by the state and can be used for specific reasons specified by the loan lender.
- Proprietary reverse mortgages are not supported by the government. They come with their own requirements for eligibility. These loans are private and easy to obtain.
Reverse mortgages are helpful for life expenses. Speak with a reverse mortgage lender today to explore your next loan options.
About the Author
Carolyn Ross
Carolyn Ross spent her career in the advertising world as a commercial photographer. She is no stranger to meeting challenging deadlines and working with many people in a fast paced environment.
She has shot for various magazines such as Architectural Digest, Boston Globe Magazine, Wellesley Weston, South Shore life as well Boston Magazine to name a few. Her love of homes and visual spaces has evolved through the years and has lead her to expand her career. She currently serves on the board of a national organization: The American Society of Media Photographers for the New England chapter. She has been involved in the school art programs as well as teaching photography classes.
Carolyn's expert knowledge of staging and art direction is what differentiates her from other agents. She has also taken her keen business background and artistic talents to successfully renovate numerous investment properties in the Metrowest area over the last several years.
This is what inspires her and with determination and passion, she will bring these unique skills to your next real estate transaction.
