In order to qualify for a Reverse Mortgage, borrowers must be at least 62 years of age and occupy the property as their principal residence. They must also have little or no mortgage debt remaining. The maximum loan amount depends on the age of the borrower, the expected interest rate and the appraised value of the property.
There are many payment options available. For example, borrowers may receive monthly payments for a fixed period they select, or as long as they occupy the home as a principal residence.
Reverse mortgage need not be repaid until the borrower moves, sells or refinances the property, or dies. FHA insures the lender against the risk that proceeds from the sale of the property may not be sufficient to pay off the mortgage balance. If the property is sold, the homeowner (or heir) receives any proceeds in excess of the amount needed to pay off the mortgage.
