Reverse Mortgage Loan
A reverse mortgage loan is a type of home loan that allows homeowners who are typically aged 62 or older to convert a portion of their home equity into cash.
Unlike traditional mortgages, where borrowers make monthly payments to the lender, a reverse mortgage allows homeowners to receive payments from the lender, effectively turning their home equity into regular income.
Here are some key characteristics of conventional loans:
Credit Requirements
Reverse mortgages typically have no specific credit score requirement since they are based on home equity, not income or credit history.
Down Payment
There is typically no down payment required for a reverse mortgage. The loan is based on the equity in the home.
Terms and Interest Rates
The loan term for a reverse mortgage is typically extended until the borrower(s) sell the home, moves out, or pass away, The loan becomes due and payable when the borrower(s) no longer meet the requirements of the loan.
Highlights:
Payment Options
Home Ownership and Responsibilities
Repayment and Heirs
Counseling