Reverse Mortgage Income
Those seniors who are considering a reverse mortgage are not expected to report their earnings as income. This money is tax free and although it is a loan; the money is not repaid to the lender. Social Security checks and Medicare coverage will continue as usual during a reverse mortgage. The income can be spent at the homeowners’ discretion without following any loan guidelines.
Reverse Mortgage Guidelines
Older homeowners who reach the age of 62 may choose to enroll in a reverse mortgage to increase their income. A portion of the home’s equity is returned to the borrowers through a monthly payment arrangement, the establishment of a line of credit, or received in one lump sum amount. The senior owners would reside in their home and receive tax free money to fund the costly years of retirement. Approved homes for this type of mortgage include; single family dwellings, 1-4 multi-family structures where one unit is the homeowners’ primary residence, condominiums or town homes, and most mobile homes.
Reverse Mortgage Consideration
Many individuals reach retirement age without a large enough nest egg to support their golden years. Choosing to use the equity in the home is one viable option to obtain tax free money that is considered a loan, but never has to be paid back. Homeowners may live in their home until the decision is made to leave the property; at that point, the home is turned over to the lender. Paying property taxes, insurances, and usual maintenance are the financial responsibility of the homeowners. A reverse mortgage is a Government sponsored loan to help senior citizens live with financial security.
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