What Are Reverse Mortgages
In 1987 the United States Department of Housing and Urban Development (HUD) created Reverse Mortgages as a "Safe and Highly-Regulated Plan" to give older American Homeowners (over 62) greater financial security.
As the name implies, in a reverse mortgage the lender pays you the monthly mortgage payments. The lender either pays you monthly payments or extends a line of credit to you equal to the amount of equity you have in your home. This mortgage is made available to seniors to supplement their monthly incomes.
In addition to providing an extra income, there are no restrictions on how you use the proceeds. Fix up your home, travel, or pay other debt. It's up to you. You will keep your home for as long as it remains your main residence and you don't have to have income to be eligible.
Who Qualifies for a HUD Reverse Mortgage?
To be eligible for a HUD Reverse Mortgage, HUD's Federal Housing Administration requires that:
- You are a homeowner 62 years of age or older;
- Have a very low outstanding mortgage balance or own your home free and clear
- You meet with a HUD-approved counseling agency -- to make sure you understand what a HUD Reverse Mortgage will mean for you.
For more information concerning Reverse Mortgages see:
Home Staging Tip Of The Day
RE/MAX Valley Real Estate:Independently owned and independently operated franchise of RE/MAX International Inc.
An Equal Opportunity Employers and supports the Fair Housing Act.
Licensed in the State of Ohio
Copyright © 2009 RE/MAX Valley Real Estate All rights reserved.
Licensed in the State of Ohio
Revised: 01/09/10.