What is a Reversible Mortgage?

What is a reversible mortgage?

1 Answer

What you may be asking about is a " Reverse Mortgage". A Reverse Mortgage is used by any homeowner over the age of 62 that wishes to release the equity of their home, without the obligation of making payments. In addition, a Reverse Mortgage and cash can be used to purchase a home without having to make payments.

The loan works quite simply. The homeowner or owners over the age of 62 use the equity in the home they use as their primary residence to either receive a lump sum payment, monthly payments, or fund a revolving line of available cash to be used as needed.

The amount of money depends on two things only, the age of the borrower(s) and the value of the home. While this loan isn't for everyone, for those who can benefit from it, it works great. It can provide money to a home owner without any income requirements or credit history. It can provide income for those who need a little help making ends meet.

To find out more information you can go to www.fha.govLook down the left column on the bottom for "FHA Consumer Marketplace" the in the middle of the screen find "FHA Insured loans and Lenders" the last line is "Reverse Mortgages". You can find all the answers to any question as well as locate a lender to help you should you choose to move forward.

Good Luck!