Do you have to be 62 for a reverse mortgage?
No. Home Equity Conversion Mortgages (HECMs), the most common type of reverse mortgage loan, are a special type of home loan only for homeowners who are 62 and older.
Who is the owner of the home in a reverse mortgage?
With either loan structure, reverse or forward, the homeowner always owns the home. The deed and title remains in the homeowners name and any equity in the property belongs to the borrower or his/her heirs. FIND OUT WHAT YOU MAY QUALIFY FOR!
What happens if you default on a reverse mortgage?
It is possible to default on a reverse mortgage by breaking one of the three loan maturity rules outlined in your loan agreement. To keep your reverse mortgage in good standing you must maintain property taxes, homeowner’s insurance, and occupy your home as your primary residence.
When does a reverse mortgage become due and payable?
Reverse mortgages become due and payable upon the death of the last remaining borrower or when the last borrower permanently leaves the home. Heirs and others are not entitled to continue to live in the home after the borrowers are gone under the terms of the loan.
Do you have to pay off a reverse mortgage if you have no heirs?
Borrowers just looking to pay off an existing loan so that they can remain in their home, who have no heirs or no heirs to whom they are mindful of leaving their home may want to be able to use the proceeds now to enrich their lives. Either way, it is your home, your equity, and your choice.
With either loan structure, reverse or forward, the homeowner always owns the home. The deed and title remains in the homeowners name and any equity in the property belongs to the borrower or his/her heirs. FIND OUT WHAT YOU MAY QUALIFY FOR!
What happens if your parents have a reverse mortgage?
No matter how large the loan balance, your parents (or their heirs) will never have to pay more than the appraised value of the home or the sale price. This feature is referred to as non-recourse. If the loan balance exceeds the appraised value of the home, then the FHA insurance fund absorbs that loss.
Can a 62 year old live in a reverse mortgage?
It’s important that these issues be discussed with a reverse mortgage loan officer prior to the loan closing. In the case of a couple, if one spouse is under 62, it may be possible for that person to continue living in the home after the older spouse passes away, as long as certain conditions are met.
Reverse mortgages become due and payable upon the death of the last remaining borrower or when the last borrower permanently leaves the home. Heirs and others are not entitled to continue to live in the home after the borrowers are gone under the terms of the loan.