Reverse mortgages are the perfect option for those that need an additional income stream.
Reverse mortgages are a way that seniors can get additional income to live on to help with their expenses. Is a reverse mortgage a good option for everyone? Not necessarily as there are many requirements that must be met to qualify. If you are a senior and own your own home then this might be an option for you.
Age Requirements
If you are the borrower on record of the reverse mortgage then you must be at least 62 years of age. Anything younger than this and you will not be able to get a loan. If one of you is younger than 62 and you still want the loan then you might consider having just one person on the loan to qualify.
Outstanding Loans
If you still owe any money on your home then you do not qualify. Your home must be free any clear of any outstanding loans before you can apply for a reverse mortgage. If the amount is small enough and you have enough funds to pay it then it might be advantageous for you.
Governmental assistance
If you are currently getting Medicaid, social security payments, or other governmental assistance then a reverse mortgage may not be for you. The payments would be considered liquid funds and might disqualify you for the assistance that you are getting. You might want to inquire about this with a loan specialist to see how this might affect you.
Loan Amounts
If your home is more than the maximum amount allowed for a reverse mortgage you might not want to proceed. The current 2009 limit is $625,000. This is more than the average home value for many people but in areas where the house values are high this might not be a viable option. You will not get the full value of your home. You can still leave the house to your heirs but they will have to refinance your loan before they can claim ownership.
How to choose
As you can see there are many decisions that must be made before you make the leap into a reverse home mortgage. The question of whether or not a reverse home mortgage for everyone can only be determined by you and your needs. If you want more information you should check out no less than 10 companies to get all the facts to pick the best one for you.
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