Unlock Your Finances with a Reverse Mortgage
Did you know that some homeowners are able to turn their home equity into a cash payment without needing to repay the loan? This is called a reverse mortgage. A reverse mortgage is generally used when senior citizens would like a cash payment to help manage daily living expenses or medical care with a loan they won’t need to repay. The Tap Money team can help you understand everything you need to know about reverse mortgages and if one is right for you. Contact us today to learn more about how a reverse mortgage works and if you qualify.
Who is eligible for a reverse mortgage?
Reverse mortgages are available to senior citizens aged 62 or older. This type of loan is insured by the Federal Housing Administration (FHA) to help senior citizens pay for home renovations, healthcare, and living expenses while still living in the home. You may even be able to eliminate your monthly mortgage payments completely. Most single-family homes, townhouses, approved condos, and manufactured homes are eligible for a reverse mortgage loan, as long as the property meets FHA minimum property standards. The Tap Money team can help you understand if you and your home will qualify.
If you are eligible, you will still be required to pay property taxes and insurance as well as maintain the home according to FHA guidelines. However, the loan does not become due as long you live in the house full-time.
How does a reverse mortgage work?
A reverse mortgage loan uses a home’s equity as collateral. It doesn’t need to be repaid until the last homeowner moves away or passes away, at which point, the lender will usually sell the property to pay off the rest of the loan. That way, you as a homeowner do not have to repay the loan personally or make payments, since the property itself will be sold to repay the loan after you no longer need to live there. A reverse mortgage may be an excellent option for senior citizens who wish to increase their monthly fixed income, so please call our office to learn more. We’re happy to walk you through the process and explain all the details.