A reverse mortgage is a common phrase. So what are reverse mortgages? It is a type of a mortgage that can assist in providing a tax-free cash flow to eligible homeowners 62 years of age or older. It is a unique loan used to convert a percentage of home equity into available cash. The reverse mortgage information that we discuss here will be useful if you are looking at this option.
Reverse Mortgages – What is it Used for?
Reverse mortgages can provide seniors with financial independence and the ability to age longer in their home. These funds are commonly used for one or more of the following:
- Supplement a portion of daily living costs
- Pay off high debts in order to reduce unaffordable monthly living costs so affordable again
- To pay for home care costs
- Pay for home repairs and structural adaptations
- Keep funds available for emergencies
- Access to credit when other forms of credit are unavailable
- As an added option to a poorly performing financial portfolio
Reverse Mortgages – Advantages
The biggest advantages are that there are no credit-worthiness or income requirements. Instead of making a payment on your loan, you receive monthly payments, a lump sum payout, or a line of credit. Money from reverse mortgages can provide seniors with the financial security they need. Also, it can enable them to enjoy their retirement years while allowing them to remain in their home. Check out ACCC’s reverse mortgage resources for more details.
Qualifying for Reverse Mortgages
Besides the age and residency qualification, borrowers go through a financial assessment with their lender. In addition, they must acquire the FHA required HECM counseling certificate. ACCC is a Massachusetts and HUD-approved provider of the counseling and certificate.
If you are seeking assistance with housing services, speak with a certified counselor at ACCC today. Call 800-769-3571.