What is a Reverse Mortgage?

What is a Reverse Mortgage? Sounds like something that goes backwards. That’s exactly what a reverse mortgage is. Instead of having to make monthly mortgage payments, senior homeowners can access the equity in their home and have a reverse mortgage lender make monthly payments to them. The borrower continues to live (in fact, is required to live) in their home. Since a reverse mortgage requires no payments, the reverse mortgage is basically a tax-free income stream for seniors that repays you for the years you spent making mortgage payments month after month.

Many seniors have found a reverse mortgage loan can be the ideal source of additional income to cover rising costs in today’s economy. Plus, the cash loan you receive from a reverse mortgage can be disbursed as one lump sum, monthly payments or a home equity line of credit (HELOC). If you’re ready to put your home to work for you, contact Trinity Reverse Mortgages at 1-866-707-4664 for reverse mortgage counseling about your needs for tax-free access to the accumulated equity in your home.

The Federal Housing Administration (FHA) insures HUD reverse mortgages, called Home Equity Conversion Mortgages, or HECM. The skyrocketing costs of healthcare today is hurting many senior’s ability to remain independent and living in their existing home. Reverse mortgages are often used to pay for healthcare, in-home care, and prescriptions.

Earlier this year, the FHA announced the “HECM for Purchase” program that was designed to help seniors that need to move to a smaller house or relocate to be closer to family members during their senior years.

FHA-insured reverse mortgages are available in all 50 states, including California. To qualify for any HECM, the owners named on the property’s title must be at least 62 years of age or older. The homeowners must have accumulated equity in their existing home and intend to use the new home as their primary residence. An advantage of the “HECM for Purchase” reverse mortgage is the single-closing for converting a HECM loan to a new property. To find out whether you qualify for a reverse home equity loan, try our website’s free reverse mortgage calculator. Let us know how we can improve your online experience.