Pros And Cons Of Reverse Mortgage

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There are so many things you need to think about when buying a home that it can make your head spin. However, if your nearing retirement and thinking about buying a home, that adds a whole new dimension to the home buying process and another whole list of things you need to think about as well. One of the things you can add to your list is buying a home with a reverse mortgage in mind. And if you are considering a condo as your next home, and a reverse mortgage is something you will at some point consider, you will also need to know whether or not your preferred condo is on the list of HUD approved condos. Yes, we realize this is probably all a bit confusing that 's why we are going to go over in quite a bit of detail what a reverse mortgage …show more content…
A reverse mortgage is a specific type of home loan that will help homeowners who are 62 or older gain access to the equity in their home to help pay for other things. Reverse mortgages are helpful to seniors who want to remain in their homes versus having to go into a retirement home environment. This type of loan will give an older homeowner the money they need to remain in their home whereas without this income, they might not be able to. However, the money received from a reverse mortgage can be spent on anything the homeowner wants to spend it …show more content…
This type of loan is the Federal Housing Administration 's (FHA) version of the reverse mortgage and the U.S. government insures these types of loans through the FHA. The HECMs are the most common of the reverse mortgages and make up about 90 percent of the total reverse mortgage market. For this type of loan, you must be at least 62 years of age and use that home as your primary residence. You must also own the home outright or have a significant amount of equity in your home. Additionally, you will qualify for a HECM if your home is a single family home or a one to four unit dwelling with you occupying one of those four units. And your home must be a HUD approved

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