Can I Use The Funds From A Reverse Mortgage Any Way I Choose?

The well-paid 65 plus actors sound convincing with a soft, humble pitch that makes you want to get up off that sofa and hustle for the nearest yellow pages to look for a reverse mortgage lender to answer the $64,000 question, can I use the funds from a reverse mortgage anyway I choose? The answer is yes with virtually no restrictions, just some mouseprint.

What Can I Do With The Reverse Mortgage Funds/

Borrowers have used funds to supplement their monthly income, pay for in-home care, pay off their current mortgage, if any, pay off credit card debt and actually use reverse mortgage money to purchase a new home. Since the homeowner has payment options and you ask your lender can I use the funds from a reverse mortgage any way I choose a homeowner will be able to pick from these options, receive payments as a credit line, monthly income, lump sum distribution or any combination of the three.

Do Any Of The Reverse Mortgage Funds Affect My Social Security?

If you close on a reverse mortgage and draw money either on a monthly basis or in a lump sum, Social Security and Medicare will not be affected. However, Medicaid and other need-based government assistance can be affected if too much of the funds are withdrawn and not spent in a one month period. This part of the reverse mortgage process is not well understood by most seniors. Use it or lose it.