Getting a home equity loan is not easy these days specially if you are not working to make the payment on it.   However, if you are 62 years or older and have equity in your property you might qualify for a Reverse Mortgage.  

Reverse Mortgage programs are designed for homeowners who are 62 years of age or older to tap into the equity of their homes and receive payments to cover expenses or supplement retirement income.  Homeowners who secure a Reverse Mortgage and meet the obligations of the loan, can stay in their homes as long as they desire and can even eliminate monthly mortgage payments by using the loan to pay off an existing mortgage.

The funds from Reverse Mortgages can be used to :

  • Pay Property Taxes
  • Supplement your retuirment income
  • Cover Medical Expenses
  • Home Remodeling and Repairs
  • Pay for Long Term Care
  • Consolidate Debt
  • Payoff existing mortgage
  • Financial Planning and Every Day Expenses

To qualify for a Reverse Mortgage, the home owners much meet the following parameters:

  • 62 years of age or older
  • Must live in the home as a primary residence
  • Home must meet minimum FHA property standards
  • Must own the home (100% equity) or able to pay off the existing mortgage & liens with the proceed the Reverse Mortgage
  • Participate in Reverse Mortgage Counseling

The properties that are eligible for Reverse Mortgage include:

  • Single Family Home
  • 2-4 Unit properties
  • FHA approved condos
  • Townhomes
  • Planned Unit Development

Some lenders offer Jumo Reverse Mortgage loans which are from $500,000 to $6M for higher value homes. However, a Reverse Mortgage is just another instrument to spent the equity of your property and if you intend to gift the property to your Estate, it’s wise to contact a Estate Planning attorney or your CPA before you signed the dotted line.

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