Reverse mortgages can help older homeowners who are house-rich but cash-poor stay in their homes and still meet their financial obligations. A Reverse Mortgage allows older homeowners to convert part of the equity in their homes into cash without having to sell their homes or take on additional monthly bills. In a “reverse” mortgage, you receive money from the lender and generally don’t have to pay it back for as long as you live in your home. Instead, the loan must be repaid when you die, sell your home, or no longer live there as your principal residence.
Reverse mortgage loan advances are not taxable, and generally do not affect Social Security or Medicare benefits. You retain the title to your home and do not have to make monthly repayments. In the HECM program, a borrower can live in a nursing home or other medical facility for up to 12 months before the loan becomes due and payable.
To qualify for most reverse mortgages, you must be at least 62 and live in your home. The proceeds of a reverse mortgage (without other features, like an annuity) are generally tax-free, and many reverse mortgages have no income restrictions.
3 TYPES OF REVERSE MORTGAGES:
LUMP SUM | MONTHLY | ITEMIZED
4348 Van Nuys Boulevard, Suite 200 | Sherman Oaks, California 91403
o. 818.907.5757 | f. 818.907.5626
2583 North Palm Canyon Drive, #200 | Palm Springs, California 92262
Corporate BRE: #01144034 | NMLS: #31338
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