Reverse Mortgage Requirements
Reverse Mortgage Requirements

    Owner or spouse must be at least 62 years old.
    Must meet all FHA minimum property standards.
    Health and safety issues cleared.
    Any debt on the home must be paid off before or through the proceeds of the loan.
    Borrower must live in the home as their primary residence.
    Borrower must not be delinquent on any federal debt.
A reverse mortgage differs from a conventional loan in several ways. A conventional loan requires monthly payments and a down payment from the buyer to the lender upon purchase. The home equity increases with every payment until the mortgage is paid off. With a reverse mortgage, the homeowner has no payment obligations on a month-to-month basis. Because the loan is typically used to downsize or relocate a residence, the owner has access to the home equity in the previous home and can use the equity in a variety of ways: a lump sum of cash, a monthly income, or a line of credit.
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