Reverse Mortgage Guide

When it comes to financing and refinancing your home, most people will do anything they can to try and make a little bit of extra money. One option that can help you make money when you’re over the age of sixty-two is a reverse mortgage. While regular mortgages require you to make monthly payments, a reverse mortgage does the opposite and allows you to draw non-taxable money from your lender and it usually doesn’t have to be repaid while you live in that house.

Here are the three different types of Reverse Mortgage Solutions.

  • Single Purpose Reverse
  • Proprietary Reverse Mortgages
  • Home Equity Conversion

Qualify for a Reverse Mortgage

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Single Purpose Reverse

Single-purpose reverse mortgages are easily the most inexpensive option when it comes to reverse mortgages. These are offered by both local and state government agencies as well as some nonprofit organizations, and usually only people with low income are eligible for this type of reverse mortgage. These loans are generally only allowed to go toward one specific use that will be specified by the provider and will usually include things such as repairs and improvements to your home or even property taxes.

Proprietary Reverse Mortgages

These loans stay with single-purpose loans on the less popular end of the scale. These loans are specifically privately-issued loans that are controlled and backed by their individual providers. These loans are generally much higher than single-purpose loans and their eligibility requirements are greater, however there are no limits to what the money can be used for. Sometimes the requirements for living in the home and the interest rates are much higher than expected.

Home Equity Conversion

Home Equity Conversion (HECMs) or federally-insured reverse mortgages are similar to proprietary loans in that they are also pretty high-dollar. These loans account for about ninety percent of the overall reverse mortgages, are virtually available to anyone, do not have a set income amount or any limits on what the loan can be used for. Before applying for an HECM, the applicant must meet with a counselor to discuss the financial obligations and if there are any other better options available for them.

As you can see, Reverse Mortgage Information reveals three different options for getting a reverse mortgage. There are quite a few factors that go into deciding what type would be best for you and your family, and those are carefully considered when applying for this benefit. If you are interested in going through with a reverse mortgage or if you have any questions, you can find a Reverse Mortgage Calculator online that will help you determine which style would suit you best

Review the information laid out on Reverse Mortgage Qualifier

And then fill out the form above to see if you qualify