Moving Forward with a Reverse Mortgage
August 1, 2009
Gina M. Barry, Esq.
A multitude of seniors, having paid off their mortgages many years ago, currently own their homes free and clear. Some are fortunate, and they have a nest egg that, along with their income (Social Security / pension), allows them to maintain their home and provide for themselves without difficulty. Some are not so fortunate, and although they own their home, they do not have adequate sources of income and other assets to maintain the home as well as provide for their care needs.
When a senior find himself or herself unable to afford his or her home, but has some overwhelming reason to remain there, instead of selling or downsizing, a reverse mortgage, also known as a home equity conversion mortgage (HECM), can provide access to the equity in the home without the traditional monthly payments associated with a mortgage. In order to qualify for a reverse mortgage, the borrower must be at least 62 years old and own their home. The home must be the borrower’s primary residence, meaning that a rental or vacation property would not qualify. If the borrower has an existing mortgage on the property, he or she must pay off the existing loan with money received from the reverse mortgage. There are no income requirements. The borrower must undergo consumer counseling before being approved for the reverse mortgage if they are participating in the federal HECM program.
Similar to a traditional loan, ...
You may read more at the link below.
by: Gina M. Barry
Prime
August 2009
Download the full PDF version:
Life Stages
Areas of Practice
