Reverse mortgage is a mortgage loan where you receive money from your lenders, instead of paying them, while maintaining complete ownership of your home.

This allows you to tap into the equity of your homes and convert it to cash, which you can use for living expenses or any purpose you desire. This loan type has no income, medical, or credit requirements and doesn’t oblige you to make monthly mortgage payments.

You qualify for a reverse mortgage if:

• You are at least 62 years old (in cases where there are more than one person in the title, both must be at least 62 years old)

• The home serves as your primary residence

• You live in  a single-family home, condo, townhouse, manufactured home, and 1-4 unit homes where you are occupying at least one unit

• You have received counseling session from a source approved by the HUD

You can receive a lump sum, monthly payments, or a line of credit. You can also choose the terms for your reverse mortgages. In addition, you or your heirs don’t have a personal liability because the Federal Housing Administration insures both you and the lender against losses. The lender can only look to the property for repayment.

You are only required to repay the loan when the mortgage ends, you permanently move out or sell the house. The repayment is taken out of the home equity. Your heirs can also sell the property and use the money to pay for the loan.