So, what is a reverse mortgage?
It is a Federally-insured reverse mortgage loan backed by the U. S. Department of Housing and Urban Development (HUD). If you qualify, a HECM loan would enable you to withdraw a portion of your home’s equity. which can be used to pay for unexpected expenses, such as nursing home costs or long-term care. It could also provide you with additional cash flow for all the expenses you have. As long as all loan terms are met, the loan does not require repayment until the last surviving borrower permanently moves out of the home, or passes away. How much you can borrow with a HECM loan depends on several factors, including:
• Borrower(s) must be 62 years or older
• Must be a homeowner and either own home outright or have significant equity; must live in the home as a primary residence (live there 6+ months per year)
• The property must be a single-family home, 2- to 4-unit dwelling or FHA-approved condo
• Must meet minimal credit and property requirements
• Must receive reverse mortgage counseling from a HUD-approved counseling agency
• Must not be delinquent on any federal debt