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
Jodie Franklin
I love helping people find their dream home or sell their house in order to achieve their next goals. I have been working hard for my clients for over 18 years throughout southeast Michigan. I have experienced every kind of transaction there is.
Helping my community and being involved is extremely important to me. I am Past President of the Michigan Ability Partners board, which helps Veterans and people with disabilities reach independent, self-supported, and satisfying lives. I have also been a member of the City of Milan Tax Review Board and Zoning Board, and involved in Milan Main Street. I have been a major sponsor of events for Michigan Ability Partners, Aid in Milan, Milan Main Street, and many more organizations that work to make our communities better.
I was 2018 President of the Ann Arbor Area Board of Realtors, Realtor of the year in 2016 for AAABOR and nominee for Michigan Realtor of the Year. I serve on many committees with the local board, state board and was a member of the Housing Opportunity Committee for the National Association of Realtors (2018-19). I am currently serving my second term as a Michigan Realtors Board of Directors.
I have liked in Milan for over 20 years and enjoy living here with my husband Cliff, son Evan, and dog Rosie.