If I have a reverse mortgage can I get a mortgage on another house? Can I buy a business when I have a reverse mortgage? Does a reverse mortgage ruin credit?
When you have a reverse mortgage you do not have to refrain from making any other large purchases. If you qualify for a mortgage on another home or vacation property, there is nothing in the contract stopping you from doing this. Remember however, if you purchase another home you cannot make it into your main residence. There are residence requirements on a reverse mortgage. You must live in the house that you have a reverse mortgage on full time. This means that it must be for at least 9 months out of the year. Some reverse mortgages only require 7 months; you need to verify this amount. If you purchase a second property and move into it full time your reverse mortgage will become due and payable.
Can I buy a business when I have a reverse mortgage?
You are free to do whatever you wish with the money you receive from a reverse mortgage. There are no limitations applied to the usage of funds from the loan. If you wish to purchase a business, go on vacation or just plain have a shopping spree at the mall, you are free to do so. Of course, just like any other form of income, the wiser you use this money the longer it will last.
Does a reverse mortgage ruin credit?
A reverse mortgage will not ruin your credit. Federally insured reverse mortgages will show up as a lien against the home but not a derogatory statement on your credit. Since no payments are made nor is there a credit limit involved, there is no reason to place this type of loan on your report.
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