Reverse Mortgages
Popular for older homeowners who have equity in their homes and little or no income -
answer What are reverse Mortgages popular for and why?
Allow older homeowners to use equity in their homes to meet expenses of living or
home improvements. - answer What do reverse mortgages allow people to do?
They are not required to repay as long as they continue to live in the home? - answer
Are borrowers required to repay a reverse mortgage?
Borrower must be 62 years or older and must reside in their home - answer At what
age are reverse mortgages available to?
Mortgage must be payable in Full when the home is sold or last surviving home dies. -
answer When must the mortgage be payable in Full?
Interest is charged on the outstanding balance and added to the debt. - answer What
happens to the interest in a reverse mortgage?
It increases with each advancement of credit and with accrued interest - answer
What happens to the debt in a reverse mortgage?
Single Purpose Reverse mortgage
Home Equity Conversion Mortgage
Proprietary Mortgage - answer What are the 3 types of reverse mortgage?
HECM - answer Which is FHA Reverse Mortgage
Reverse Mortgage that are regulated and insured by HUD. Allow borrowers to receive
fixed monthly payments, a line of credit, or a combi of payment and credit line. - answer
What are HECM Reverse Mortgage?
Borrowers must complete counseling with a HUD approved HECM counselor. - answer
What must borrowers complete if they wish to get a reverse mortgage?
Low costs loans offered to low income borrowers by state and local agenices or non-
profit - answer What is a single purpose reverse mortgage and who can offer it?
They can only be used for the purpose specified by the lender such as home
improvement or paying property taxes. - answer What are the specifications of a
single purpose RM
