A home is a big investment. As you continue to own a home, it builds equity over the years. This article provides a basic guide of reverse mortgages and how they put the power of your home’s equity back in your grasp.
What are reverse mortgages?
A reverse mortgage is a program meant for elders aged 62 and up. It allows them to borrow some of the equity that has built up for their home in the form of a loan. A reverse mortgage lender offers participants to choose a loan type. From there, they can decide if they want a line of credit or lump sum of funding.
How do you qualify for a reverse mortgage loan?
To qualify for a reverse mortgage loan, you have to meet these criteria:
- Owner of the property bust be at least 62 years old
- Home must be completely owned or be mostly paid off
- Must show finances are available to continue paying property taxes
- Property must be the primary residents
Once you’ve qualified and been approved for this kind of loan, it’s then time to decide which loan type you’ll utilize.
Reverse mortgage Types
There are multiple loan types to choose from:
- HECMs or Home equity conversion mortgages can be used for almost anything. They are supported by Urban Development and the U.S. Department of Housing
- Single-Purpose Reverse Mortgages are more affordable. They can be provided by the state and can be used for specific reasons specified by the loan lender.
- Proprietary reverse mortgages are not supported by the government. They come with their own requirements for eligibility. These loans are private and easy to obtain.
Reverse mortgages are helpful for life expenses. Speak with a reverse mortgage lender today to explore your next loan options.
About the Author
Debbie Caldwell
When you first meet Debbie Harris-Caldwell, you are immediately drawn to her charming Welsh accent and the twinkle in her eye. The well-traveled transplant from Wales is quick to set you at ease and time spent with her promises to be time well spent.
Debbie has been a real estate agent for 40 years and takes great pride in her customer service skills. "I make myself available to my customers when they need me, whether it's on a Sunday Evening or after their long day at work. I make my schedule fit theirs. I also keep my customers updated on everything happening with their listings or purchase, I am their conduit for information." She has built a business following her key principles of clear communication, attention to detail, client advocacy, and comprehensive knowledge of the area. Debbie comes to every new transaction with positive energy, determination, a strong understanding of the currents driving the market, and the expertise that comes from a lifetime of experience. She knows the importance of marketing and whether a home is for sale for $200,000 or for $2 million, she always has professional photography done and creates a listing presentation that best shows off her customer's home.