This is the first in a three part series of frequently asked questions about Reverse Mortgage. Find Part 2 here and Part 3 here. If you have questions that are not currently listed, please don’t hesitate to contact me directly.
Are There Any Special Requirements to Get a Reverse Mortgage?
In order to qualify for a reverse mortgage, you must own your home, be at least 62 years old, and have some equity in your home. There are no income, credit, or medical requirements.
How Much Money Can I Get?
In general, the older you are (or the youngest borrower in the case of couples) and the more valuable your home, the more money you can get. Other factors also come into play, such as: the appraised home value, interest rates, and the amount of equity in your home.
Does My Home Qualify?
Eligible properties include single-family homes, 2-4 unit properties, modular homes, condominiums, and townhouses. This home must also be your primary residence.
What are My Payment Plan Options?
Funds from a reverse mortgage can be received all at once as a lump sum, as fixed monthly payments for a set term or for as long as you live in the home, as a line of credit which allows you to draw on the loan proceeds at any time, or a combination of all these.
How Can I Use the Proceeds from a Reverse Mortgage?
Their are no restrictions as to how the proceeds from a reverse mortgage can be used. Whether it is to supplement retirement income, to cover your living expenses, to repair/modify your home, to pay for medical expenses, prevent foreclosure, pay off existing debts, or simply do something for nice yourself, no one can tell you how you must spend your money.
Jan Jordan is a Reverse Mortgage Specialist serving the Fort Collins, Loveland, Greeley, and Front Range areas of Colorado. Click here to contact Jan and learn if reverse mortgage is right for you.