Reverse Mortgage?

A reverse mortgage is a special type of home loan that lets you convert a portion of the equity in your home into cash. The equity that built up over years of home mortgage payments can be paid to you. But unlike a traditional home equity loan or second mortgage, no repayment is required until the borrower(s) no longer use the home as their principal residence or fail to meet the obligations of the mortgage. When you sell your home, you or your estate will repay the cash you received from the reverse mortgage plus interest and other fees, to the lender. The remaining equity in your home, if any, belongs to you or to your heirs.

Many seniors use it to supplement social security, meet unexpected medical expenses, make home improvements and more. A reverse mortgage is Government-Insured by the Federal Housing Administration (FHA), a division of the Department of Housing and Urban Development (HUD). The Home Equity Conversion Mortgage (HECM) is a reverse mortgage program which enables you to withdraw some of the equity in your home.

More information on government reverse mortgages can be found here. It’s always important to thoroughly investigate this type of mortgage and get the advice of a qualified and trusted financial advisor or attorney not affiliated with the company brokering the loan.