A reverse mortgage is a loan against the equity in the home which provides tax-free cash advances, but requires no payments during the term of the loan. Since there are no monthly payments during the life of the loan, the balance grows larger and the equity gets smaller. The loan is not due and payable until the borrower no longer occupies the home as a principal residence. The debt can then be settled by selling the home, refinancing the loan, or paying the debt off in cash. Although there are no income or credit requirements to qualify for a reverse mortgage, applicants must be at least 62 years of age and own their own home at the time of closing.

Essentially, a reverse mortgage is a unique financial tool that can be used by any homeowner, 62 or older, who wants to utilize the equity in their home for other purposes without obligating themselves to a monthly payment. Money can be obtained in several different ways, including:

• Lump Sum Cash
• Monthly Payment
• Line of Credit
• Mix and Match the Above Options to Best Suit Needs of the Borrower

Benefits of a Reverse Mortgage

• Borrowers can utilize tax-free funds from a reverse mortgage for anything they desire.
• The borrower will not have to repay the loan while living in the residence.
• There are no income, medical or credit requirements to be eligible for a reverse mortgage.
• Borrowers can craft the reverse mortgage benefits to fit their needs.