A reverse mortgage loan can be used to pay for:
- Home repairs and renovations
- Existing debt, including an existing mortgage
- Long-term health care
- Health care and prescription drugs
- Almost any other need
You can even use a reverse mortgage to purchase a new home.
A reverse mortgage is a loan that allows seniors to use the equity they’ve accumulated in their homes to borrow money. For as long as the reverse mortgage is outstanding, no monthly mortgage payments are required as long as you stay in your home and remain current on property taxes, homeowner’s insurance, and applicable Homeowner Associations (HOA) dues. The loan matures when the borrower no longer occupies the home as a primary residence.
Homeowners who are 62 years and older can qualify. There are no income qualifications because the size of the reverse mortgage depends upon the applicant’s age, home value, and current interest rates. Homeowners may be eligible even if a first or second mortgage exists.