We’ve found that most folks tend to have quite a few misconceptions about what a reverse mortgage is. The term can be a bit confusing (it’s not like your mortgage is going backwards). For many people, particularly those who are a bit older, it can be a great way to really enjoy the golden years of your life. Instead of spending your senior years worried about money, you can truly enjoy them. A mortgage like this is a great way to kind of sit back and really savor the fruits of your labor, so to speak. In this blog, we’ll explain how a mortgage like this works, who’s eligible for it, and how we can help.
Some folks hear about this kind of mortgage and immediately think: “isn’t that just selling your home to the bank?” It absolutely is not. Instead, this mortgage is a loan against your home’s equity. You aren’t relinquishing your ownership rights or title in any way. Instead, this is a loan that was basically specifically built to fit the lives of retirees on fixed incomes. As it doesn’t have any required monthly mortgage payments, it’s perfect for those who have money coming in that’s at a very set level. What really makes these loans so appealing for so many is that they offer cash tax free that can be used for a wide range of purchases.
Age and Money Qualifications
Unfortunately, not everyone is going to be able to qualify for these mortgages. They have some very iron clad rules. For example, you have to be at least 62 years old. This is not the kind of mortgage you can get in your forties, or at some younger age. You must be at least 62. Moreover, you have to at least have just a small amount left to pay your mortgage or you have to own your home free and clear. As you might imagine, the phrase “small amount” is open to some interpretation.
Another important thing to keep in mind about these mortgages: your home has to be in good condition. You can’t have let your home go for a long period of time and then just expect to be able to get one of these mortgages. On top of that, your home truly has to be “your home.” It must be your primary residence. When you think of “home,” this has to be it. It’s OK if your home is a manufactured home, an approved condo or a single family home. It can be a multi-family home, but it can only go up to four people.
US Direct Lender for Mortgages
After reading this blog, it’s perfectly understandable that you may have some questions about how these mortgages work. That’s why we’re here to help. At US Direct Lender, we’ve helped people from all over to have the kind of mortgage that lets them truly enjoy the golden years of their lives. To find the right mortgage option for you, call us at (626) 460-8900.