In a reverse mortgage homeowners receive money from the lenders and they would not even need to pay it back to the lender as long as they occupy the home as their primary residence. Home Equity Conversion Mortgage (HECM) is a government-insured reverse mortgage. There is no income restriction and the reverse mortgages are usually tax-free and the key eligibility for the homeowners to qualify for a reverse mortgage is that the homeowners should be at least 62 years.

To qualify for a Reverse Mortgage there is no minimum income or assets required. As long as you own a home and are of qualifying age you can receive a HUD reverse mortgage. If any money is owned on your previous mortgage, it has to be paid off. You can use your home to generate income after your retirement by taking out a reverse mortgage on your home, contact us from to find out if a reverse mortgage is right for you.

Difference between a Reverse Mortgage and a home equity

Home Equity loan or a second loan has specific requirements regarding the income and the creditworthiness. And the homeowner has to make the monthly payments to repay the loan similar to the traditional loans. Whereas in a reverse mortgage there is no specific requirement regarding the income or the creditworthiness and the homeowner in turn receives monthly payments from the lender.

A reverse mortgage has nothing to do with the income of the homeowner; the loan amount that can be borrowed is only determined by an FHA formula that considers the age of the borrower, present interest rate, appraised value of the home.