All About Reverse Mortgage
Steff X
A reverse mortgage is only for people who own their home. These homeowners can do a reverse mortgage to ease financial problems they have or to use that money as living expenses. In order to be eligible for a reverse mortgage, you have to be above the age of 62.
Interesting as it sound, a reverse mortgage is a loan against your home that you do not need to pay back as long as you are living in the house. You can basically so anything you want with the money plus the sum you receiver is not taxable and will not affect your eligibility for Social Security or Medicare.
The borrower have the option to decide how best to receive this money, whether as a lump sum or a regular monthly payout. The reverse mortgage can also be arrange as a line of credit and be taken out as and when needed. You can even use a combination of the options above to suit your interest.
There is no minimum income required or credit limitations, but the borrower must pay off any existing mortgages with the money they receive with the reverse mortgage and if necessary, use personal funds as well to do so. FICO scores is irrelevant and your credit history is not important to take up a reverse mortgage. You can attend a free personalised counseling to learn more about reverse mortgage your eligibility.
However, if you have left over money in your account after the month end, it will be treated as liquid funds and is taxable. This will affect your chance of getting a reverse mortgage. Also, as a reverse mortgage borrower, you must not be late or miss any repayment, or tax and insurance payment.
Certainly, there must be a catch to a loan that 'need no repayment', as long as the owner stay in that premise. The catch comes in the form of selling the house after the owner has died to repay whatever amount that is borrowed. If there are left over funds from the sale of the property after deducting the loan amount, this sum will be given back to the heir of the owner. Other than that, the owner's family member can take out a refinance loan to repay the borrowed sum without having to se
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