The best means to find out the ‘truths’ about reverse mortgages is going to an FHA sponsored website and contacting lenders.
Reverse Mortgage Accurate Information
Older homeowners can review reverse mortgage current and accurate information at FHA online sites. These sites offer the most up to date facts concerning eligibility and qualifying factors for homeowners age 62 and older. Interested homeowners must live in a home that is mortgage free or either has a small mortgage that can be paid off at closing with a portion of the equity. The details concerning the exact percentage of equity to qualify a home for a reverse mortgage can be calculated by the lender. Contacting several lenders for this type of mortgage will ensure that the information is correct and there are no surprises on the day of closing.
Qualifying for a Reverse Mortgage
Senior homeowners must meet the minimum age requirement of 62 and live in the home as their primary residence in order to be considered for a reverse mortgage. The home must meet the criteria for an FHA approved home such as; single family dwellings, condominiums, 1-4 unit homes where one unit is occupied by the borrower, and some mobile or manufactured homes. The property owners must continue to pay for taxes, insurance, and routine maintenance and repairs for the home.
Benefits of a Reverse Mortgage
A reverse mortgage offers older homeowners financial freedom. It gives the flexibility for seniors to have enough money to live in their homes comfortably until another type of assisted living arrangement is needed. This type of mortgage affords supplemental income to release the financial burden from aging homeowners. Before the closing, homeowners will meet with a financial counselor to make sure the decision to enter into a reverse mortgage is in their best interest.
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