The amount that you can borrow is based primarily on the value of the home, the type of loan you select, the current interest rate, and the age of the youngest borrower. Reverse mortgage loans are based on those key factors and those borrowers who are older with more equity in their homes will receive more income from their property.
Reverse mortgages are not based on your credit score or income levels but there are some factors which you have control over including the home. In order to receive a reverse mortgage your home will have to be appraised, and therefore any repairs will have to be made in order to qualify for the loan. Potential borrowers need to maintain their properties before and after receiving a reverse loan.
HECM Reverse Loans Providing Income To Retirees
If you qualify for a reverse mortgage you will be able to select how you want to receive your new income source and you have up to 4 different options to choose from.
1.) monthly income
2.) lump sum
3.) credit line
4.) mix your choices from above ( example monthly and a credit line)
The income you receive from a reverse mortgage is tax free, and also the loan in itself is super safe since the federal government federally backs the reverse mortgages. Having a steady income stream is crucial in retirement and with social welfare programs deteriorating you can give yourself this peace of mind by considering a reverse mortgage.
The money you receive can be spent for any purpose, which is great since you can pay for your health related costs or even a trip that you have always wanted to take.
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